Does Hawthorn Suites By Wyndham grant franchisees an exclusive territory?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
the program. We may assess you additional No-Show or Cancellation Fees for continued failures by you.
ITEM 12. TERRITORY
You will not receive an exclusive territory. You may face competition from other franchisees, from outlets that we own or manage, or from other channels of distribution or competitive brands that we control. This may include or extended stay lodging facilities, timeshare resorts, vacation or residence clubs, fractional ownership residences, condominiums or the like which are owned, managed or franchised by our current or former affiliates or by companies or brands we or our affiliates acquire. These competitive outlets could be adjacent, adjoining or proximate to your Chain Facility. You will be assigned a "Protected Territory" under Section 2 of the Franchise Agreement in which we will not own, operate or manage another Chain Facility without your consent. We will not permit any additional franchises for a Chain Facility to open in
the Protected Territory after you execute your Franchise Agreement with us. However, any Chain Facility located within the Protected Territory when your Franchise Agreement becomes effective may have its franchise renewed or reissued, expanded for additional guest rooms or, if its franchise terminates or is not renewed, replaced with a replacement Chain Facility having not more than 120% of the guest rooms of the replaced Chain Facility, located within the same trading area.
We will negotiate the Protected Territory with you before you sign the Franchise Agreement. These negotiations will take into account one or more of the following: the nature of the market your Facility will serve (urban/suburban/rural); population density; demographics; natural travel boundaries (such as rivers or impassable lands); what public and private facilities, if any, may generate lodging demand for your Facility (including airports, highways, sports and entertainment venues, colleges, military bases, tourist attractions, hospitals, shopping malls and commercial and industrial activities); the "seasonal" versus yearround nature of the anticipated occupancy of your Facility; the weekend versus weekday anticipated occupancy of your Facility; and other variables. The Protected Territory may be defined as a radius from the door of the Facility or an irregular area bound by one or more streets, highways, governmental jurisdiction boundaries or natural boundaries, or by latitude and longitude and described in words, depicted on a map, or both. In any case, your Protected Territory will be described in Section 2 of the Franchise Agreement. There is no minimum Protected Territory that we offer.
Source: Item 12 — TERRITORY (FDD pages 71–73)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, franchisees do not receive an exclusive territory. However, Hawthorn Suites By Wyndham will assign a "Protected Territory" in Section 2 of the Franchise Agreement where they will not own, operate, or manage another Hawthorn Suites By Wyndham location without the franchisee's consent.
Even within the Protected Territory, franchisees may face competition from other franchisees, outlets that Hawthorn Suites By Wyndham owns or manages, other distribution channels, or competitive brands controlled by Hawthorn Suites By Wyndham. These competitive outlets could include extended stay lodging facilities, timeshare resorts, vacation or residence clubs, fractional ownership residences, or condominiums owned, managed, or franchised by current or former affiliates, or by companies or brands Hawthorn Suites By Wyndham or its affiliates acquire. These competitive outlets could be adjacent, adjoining, or proximate to the franchisee's Hawthorn Suites By Wyndham location.
The Protected Territory will be negotiated with the franchisee before signing the Franchise Agreement, considering factors such as the market (urban/suburban/rural), population density, demographics, travel boundaries, and facilities generating lodging demand. The territory may be defined as a radius from the facility or an irregular area bound by streets, highways, governmental jurisdiction boundaries, natural boundaries, or by latitude and longitude. There is no minimum Protected Territory offered. Any Hawthorn Suites By Wyndham location within the Protected Territory when the Franchise Agreement becomes effective may have its franchise renewed or reissued, expanded for additional guest rooms or, if its franchise terminates or is not renewed, replaced with a replacement Hawthorn Suites By Wyndham having not more than 120% of the guest rooms of the replaced Hawthorn Suites By Wyndham, located within the same trading area.