What is the Hawthorn Suites By Wyndham franchisee required to submit with the TPA request?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
| TO: | Vice President, Contracts Compliance | |
|---|---|---|
| ("Franchisor") | ||
| RE: | Current or Proposed Brand | |
| Unit | ||
| No.: ("Facility") | ||
| Located or to Be Located at | Name:("Franchisee") | |
| Current or Proposed Franchisee/Member | ||
| DATE:, 20 |
The undersigned duly-authorized representative of Franchisee requests that Franchisor offer and issue a Three-Party Agreement ("TPA") in favor of the "Lender" named below for the purpose of inducing Lender to loan funds (the "Loan") to Franchisee secured by Franchisee's interest in the Facility. Franchisee understands and agrees to the following conditions that apply to the offer and issuance of the TPA. If Franchisee is not currently a party to a franchise agreement with Franchisor pertaining to the Facility, the offer and issuance of the TPA by Franchisor will be subject to the execution of such a franchise agreement (the franchise agreement, including all amendments and ancillary agreements, the "Franchise Agreement"); the payment of an initial fee or affiliation fee, as applicable; and Franchisor's receipt of such other documents Franchi
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, a franchisee must submit a non-refundable fee of $1,000 to the Franchisor before the Franchisor will review the request for a Third Party Agreement (TPA). This fee serves as partial consideration for the review process.
It's important to note that the $1,000 TPA Fee is non-refundable, regardless of whether Hawthorn Suites By Wyndham and the lender ultimately enter into a TPA. This means that even if the agreement is not finalized, the franchisee will not receive the fee back.
Additionally, the franchisee authorizes Hawthorn Suites By Wyndham to release any information about the franchisee's account, the status of the Franchise Agreement, quality assurance inspection results, and guest complaints to the lender and its counsel. However, Hawthorn Suites By Wyndham is not obligated to do so. The franchisee is responsible for ensuring the lender has a complete copy of the Franchise Agreement if requested. The franchisee also represents that they have disclosed all current defaults to the lender.