How are liquidated damages calculated in the event of a Condemnation for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
f our claims for lost future Recurring Fees under this Agreement. The portion of Liquidated Damages collected that are attributable to the Marketing/Reservation Contributions will be credited to the Marketing Fund. Our right to receive other amounts due under this Agreement is not affected.
- 12.2 Condemnation Payments. In the event a Condemnation is to occur, you will pay us the fees set forth in Section 7 for a period of one year after we receive the initial notice of condemnation
described in Section 11.3.2, or until the Condemnation occurs, whichever is longer (the "Notice Period"). You will pay us Liquidated Damages equal to the average daily Royalties and Marketing/Reservation Contributions for the one-year period preceding the date of your condemnation notice to us multiplied by 365 less the number of days in the Notice Period. This payment will be made within 30 days after Condemnation is completed (when you close the Facility or you deliver it to the condemning authority). You will pay no Liquidated Damages if the Condemnation is completed after the Notice Period expires. For the sake of clarity, you must continue to pay when due the fees, set forth in this Agreement, including under Section 7, and all other agreements with us or our affiliates pertaining to the Facility until Condemnation is completed.
13. Your Duties At and After Termination. When a Termination occurs for any reason whatsoever:
- 13.1 System Usage Ceases. You must comply with the following "de-identification" obligations.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 78–83)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, if a condemnation occurs, the franchisee will pay fees as outlined in Section 7 for one year after the initial condemnation notice is received. The franchisee will also pay liquidated damages, calculated as the average daily Royalties and Marketing/Reservation Contributions for the one-year period before the condemnation notice, multiplied by 365, less the number of days in the Notice Period. This payment is due within 30 days after the condemnation is completed.
However, the franchisee will not be required to pay liquidated damages if the condemnation is completed after the Notice Period expires. The franchisee is obligated to continue paying all fees, including those under Section 7, until the condemnation is completed.
In the event of a proposed Condemnation of the Facility, the franchisee must notify Hawthorn Suites By Wyndham in writing within 10 days after receiving notice of any proposed Condemnation of the Facility, and within 10 days after receiving notice of the Condemnation date. The franchise agreement will terminate on the date the Facility or a substantial portion is conveyed to or taken over by the condemning authority, but the franchisee will be liable for condemnation payments as set forth in Section 12.2.