What is the length of the initial term for the RevIQ Supplement for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1 Term. This Supplement will be effective from the Supplement Effective Date, and unless earlier terminated in accordance with this Supplement, shall continue in full force and effect for a period of one (1) year ("Initial Term"). After the Initial Term, this Supplement shall automatically renew for successive one- (1-) year periods unless either Party provides not less than thirty (30) days' written notice of its desire not to renew.
- 7.2 Termination. You may terminate this Supplement at any time upon sixty (60) days' prior written notice to us, but you shall be responsible for any and all Fees for the RevIQ Products and/or Services for the remainder of the then-current Term. Should you terminate this Supplement during an existing Term, you shall remain obligated to usfor all Fees due and owing for the remainder of the then-current Term, and such remaining Fees shall become immediately due and payable by you. Any and all Fees set forth under this Supplement are non-refundable.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham FDD, the initial term for the RevIQ Supplement is one year. After this initial period, the supplement automatically renews for successive one-year periods. However, either party can prevent renewal by providing written notice at least 30 days before the renewal date.
This means that a Hawthorn Suites By Wyndham franchisee is committed to the RevIQ Supplement for at least one year, providing some stability for both the franchisee and franchisor. The automatic renewal clause ensures continued use of the system unless a conscious decision is made to terminate, which could be beneficial if the system proves valuable.
However, the franchisee should be aware of the termination conditions. While the franchisee can terminate the supplement with 60 days' written notice, they are still responsible for all fees for the RevIQ Products and/or Services for the remainder of the then-current term. This could result in a financial obligation even if the franchisee ceases to use the system. All fees paid under the supplement are non-refundable, so careful consideration should be given before entering into the agreement and before deciding to terminate it early.
It is important for prospective Hawthorn Suites By Wyndham franchisees to fully understand the terms of the RevIQ Supplement, including the fees, services provided, and termination conditions, before signing the agreement. They should also assess whether the RevIQ system aligns with their business needs and financial capabilities.