Who owns the goodwill associated with the Hawthorn Suites By Wyndham System?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
You will use reasonable efforts to protect, maintain and promote the name "Hawthorn" the other Marks, and the System's distinguishing characteristics.
You will not permit or allow your officers, directors, principals, employees, representatives, or guests of the Facility to engage in conduct that is unlawful or damaging to the good will or public image of the Chain or System.
You agree that, in event that you or any of your principals or guarantors is or is discovered to have been, convicted of a felony or any other offense likely to reflect adversely upon us, the System or the Marks, such conviction is material breach of this Section.
You will follow System Standards for identification of the Facility and for you to avoid confusion on the part of guests, creditors, lenders, investors and the public as to your ownership and operation of the Facility, and the identity of your owners.
You will participate in good faith in all Chain-wide guest service and satisfaction guarantee programs we require for all Chain Facilities.
You shall use your best efforts to promote usage of other Chain Facilities by members of the public.
You shall ensure that no part of the Facility or the System is used to further or promote a different or competing business, without our prior written consent, which may be withheld in our sole discretion, including without limitation, advertising or promotion for guest lodging facilities other than those franchised by us or our affiliates and marketing, advertising or promoting any timeshare or vacation ownership resort not affiliated with us, our affiliates, or Travel + Leisure Co., formerly known as Wyndham Destinations, Inc., and its affiliates.
- 3.12 Facility Modifications. You may not materially modify, diminish or expand the Facility (or change its interior design, layout, FF&E, or facilities) until you receive our prior written consent, which we will not unreasonably withhold or delay.
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER, AND DISPUTE RESOLUTION (FDD pages 78–83)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, Hawthorn Suites Franchising, Inc. retains ownership of the goodwill associated with the Hawthorn Suites By Wyndham system. As a franchisee, you are required to use reasonable efforts to protect, maintain, and promote the "Hawthorn" name, the other marks, and the System's distinguishing characteristics.
This means that while franchisees contribute to the brand's reputation and customer perception through their operations, the ultimate benefit of that goodwill accrues to Hawthorn Suites By Wyndham. Franchisees must ensure their officers, directors, principals, employees, representatives, or guests of the Facility do not engage in conduct that is unlawful or damaging to the good will or public image of the Chain or System.
This is a fairly standard arrangement in franchising, where the franchisor owns the brand and its associated goodwill, and franchisees operate under that brand. Franchisees benefit from the established brand recognition, while the franchisor maintains control over the brand's reputation and standards.
Upon termination of the franchise agreement, the franchisee must cease using the Hawthorn Suites By Wyndham system and take steps to de-identify the facility, reinforcing that the goodwill remains with the franchisor.