What are the 'Primary Agreements' as defined in the Three-Party Agreement for Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
The Franchise Agreement. Franchisee and Franchisor entered into that certain franchise, license or membership agreement, dated, 20 (the "Franchise Agreement"), related to a guest lodging facility located at, designated as Unit # (the "Facility"). The Franchise Agreement and certain ancillary agreements related to the Franchise Agreement collectively are referred to as the "Primary Agreements." Pursuant to the Primary Agreements, Franchisee operates the Facility as a ® franchised location. Capitalized terms used and not defined in this Agreement shall have the meanings given to them in the Franchise Agreement.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, the Primary Agreements within the context of the Three-Party Agreement encompass the Franchise Agreement itself and any related ancillary agreements. The Franchise Agreement is the core agreement between the franchisee and Hawthorn Suites By Wyndham, which grants the franchisee the right to operate a guest lodging facility under the Hawthorn Suites By Wyndham brand. The Three-Party Agreement involves the lender, franchisee, and franchisor, where the lender provides funds to the franchisee and seeks certain rights related to the Franchise Agreement as collateral security for the loan.
The Three-Party Agreement outlines the relationships and obligations of each party involved, ensuring that all parties are in agreement regarding the operation of the Hawthorn Suites By Wyndham facility. The Primary Agreements are the foundation upon which the franchisee operates the Hawthorn Suites By Wyndham location, and the lender's security interest is tied to these agreements. The franchisor consents to the collateral assignment of the Franchise Agreement, granting the lender certain rights subject to the terms and conditions outlined in the Three-Party Agreement.
It is important for prospective Hawthorn Suites By Wyndham franchisees to understand the scope and implications of the Primary Agreements, as they govern the operation of the franchised location and the relationship with both the franchisor and any involved lenders. Franchisees should carefully review the Franchise Agreement and any ancillary agreements to fully understand their rights and obligations. This understanding is crucial for the successful operation of a Hawthorn Suites By Wyndham franchise and for maintaining a positive relationship with all parties involved.