What is the length of the initial term for the Schedule agreement for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.1 Term. This Schedule will be effective from the Schedule Effective Date, and unless earlier terminated in accordance with this Schedule, shall continue in full force and effect for a period of three (3) years ("Initial Term"). After the Initial Term, this Schedule 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.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, the initial term for the Schedule agreement is three years. After this initial period, the Schedule automatically renews for successive one-year periods. However, either party can prevent renewal by providing written notice of their intent not to renew at least 30 days before the renewal date.
This means that a Hawthorn Suites By Wyndham franchisee is committed to the terms of the Schedule for at least three years. After the initial term, the agreement continues unless the franchisee or franchisor actively decides to terminate it with proper notice. This provides some stability but also requires the franchisee to remain vigilant about the agreement's terms and conditions as the renewal date approaches.
Franchisees should carefully consider the implications of this automatic renewal clause. If they are dissatisfied with the Schedule's terms or the services provided under it, they must take proactive steps to provide written notice within the specified timeframe to avoid being locked into another year. This is a fairly standard practice in franchising, allowing for ongoing service agreements while also providing an exit option with sufficient notice.