Is the initial fee for a Hawthorn Suites By Wyndham franchise refundable?

According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the initial fee and other fees payable to the franchisor are generally not refundable. Specifically, Item 7 of the FDD states that "None of the fees and costs payable to us in the above table is refundable." This means that once a prospective franchisee pays the initial franchise fee to Hawthorn Suites By Wyndham, they should not expect to receive a refund, regardless of whether they proceed with opening the franchise.

However, the FDD also clarifies that fees and costs payable to suppliers and other third parties are generally not refundable unless the franchisee negotiates a refund directly with those third parties. This implies that while Hawthorn Suites By Wyndham does not offer refunds on its own fees, there might be opportunities to recover costs paid to external vendors if the franchisee can arrange it.

This non-refundability of the initial fee is a standard practice in the franchise industry, as the franchisor incurs costs in evaluating and processing the franchise application. Prospective Hawthorn Suites By Wyndham franchisees should carefully consider their decision and conduct thorough due diligence before paying any fees to the franchisor. Understanding this policy is crucial for managing financial expectations and mitigating potential losses during the franchise process.