What is the 'Initial Fee Note' for Hawthorn Suites By Wyndham, and when is it required?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
Agreement and the La Quinta Agreement. If we approve your Franchise Application, the Application Fee will be credited towards your Initial Fee. If we defer payment of all or a portion of the Initial Fee, you will sign the "Initial Fee Note" found in Exhibit C-1. In 2024, our Init
Source: Item 5 — INITIAL FEES (FDD pages 24–27)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the 'Initial Fee Note' is a document that a franchisee will sign if Hawthorn Suites By Wyndham defers payment of all or a portion of the initial franchise fee. The document itself is found in Exhibit C-1 of the FDD. This note formalizes the deferred payment arrangement.
For a prospective Hawthorn Suites By Wyndham franchisee, this means that if you are unable to pay the full initial fee upfront, Hawthorn Suites By Wyndham may allow you to defer payment. However, this deferral is not automatic; it is subject to approval by Hawthorn Suites By Wyndham, and you will be required to sign the Initial Fee Note. The FDD does not specify the terms of the note, such as interest rates or repayment schedules, so these would need to be negotiated with Hawthorn Suites By Wyndham.
It's important to note that the initial fee itself for a new construction or conversion Chain Facility is the greater of $40,000 or $400 per room. The Initial Fee Note only comes into play if Hawthorn Suites By Wyndham agrees to defer payment of some or all of this fee. Franchisees should carefully review Exhibit C-1 to understand the full terms and conditions of the Initial Fee Note before signing any agreement.