What must the Hawthorn Suites By Wyndham franchisee confirm with the lender regarding the TPA?

According to the 2025 FDD, the Hawthorn Suites By Wyndham franchisee must confirm with the lender that the Three-Party Agreement (TPA) has been fully executed and sent to the franchisor. This confirmation should occur at the closing of the loan or at another time requested by the lender, especially if the loan closed before the TPA execution. This step is crucial to ensure that the TPA becomes effective and binding on Hawthorn Suites By Wyndham. The franchisor retains the right to withhold its signature and delivery of the TPA until it receives satisfactory evidence that the loan has been successfully closed.

This requirement ensures that all parties (franchisee, lender, and franchisor) are aligned and have fulfilled their obligations concerning the TPA. The TPA outlines the conditions under which the lender may assume the Franchise Agreement if the franchisee defaults and the lender takes possession of the facility. By confirming the TPA's execution and submission, the franchisee helps to avoid potential complications or disputes later on.

This process is important because the TPA provides benefits and protections to all parties involved. For the lender, it offers a mechanism to protect their investment in case of franchisee default. For Hawthorn Suites By Wyndham, it ensures brand standards and operational continuity are maintained even if the property changes hands. For the franchisee, it facilitates obtaining financing by providing the lender with additional security and assurance. Therefore, the franchisee's confirmation is a key step in finalizing the lending arrangement and ensuring the TPA is in place.