What must Hawthorn Suites By Wyndham receive from the franchisee and their owners before consenting to a transfer?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
If a Transfer is to occur, the transferee (or you, if an Equity Transfer is involved) must first complete and submit our application; qualify to be a franchisee in our sole discretion, given the circumstances of the proposed Transfer; provide the same supporting documents as a new franchise applicant; pay the Application Fee and Relicense Fee then in effect; sign the form of Franchise Agreement we then offer in conversion transactions; and agree to renovate the Facility as if it were an existing facility converting to the System, as we reasonably determine.
We will provide a required PIP after we receive the transferee's Application.
We may require structural changes to the Facility if it no longer meets System Standards for entering conversion facilities, or, in the alternative, condition our approval of the Transfer on limiting the transferee's term to the balance of your Term, or adding a right to terminate without cause exercisable by either party after a period of time has elapsed.
Our consent to the transaction will not be effective until these conditions are satisfied.
If we do not approve the Transfer, we may, in our sole discretion, allow you to terminate the Franchise when you sell the Facility and pay us Liquidated Damages under Section 12.1.
Such payment would be due and payable when you transfer possession of the Facility.
We also must receive general releases from you and each of your owners, and payment of all amounts then owed to us and our affiliates by you, your owners, your affiliates, the transferee, its owners and affiliates, under this Agreement or otherwise.
Our consent to a Transfer is not a waiver of (i) any claims we may have against you; or (ii) our right to demand strict compliance from the Transferee with the terms of its agreement.
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 franchisee wishes to transfer their franchise, Hawthorn Suites By Wyndham requires specific actions and submissions from both the franchisee and the prospective transferee. The transferee (or the franchisee if an equity transfer is involved) must first complete and submit an application to Hawthorn Suites By Wyndham. Hawthorn Suites By Wyndham, in its sole discretion, will then determine if the transferee qualifies to become a franchisee, considering the circumstances of the proposed transfer.
In addition to the application, the transferee must provide the same supporting documents that a new franchise applicant would. They must also pay the application fee and relicensing fee that are in effect at the time of the transfer. The transferee is required to sign the current form of the Franchise Agreement that Hawthorn Suites By Wyndham offers for conversion transactions. Furthermore, the transferee must agree to renovate the facility as if it were an existing facility converting to the Hawthorn Suites By Wyndham system, based on Hawthorn Suites By Wyndham's reasonable determination.
Finally, Hawthorn Suites By Wyndham must receive general releases from the franchisee and each of their owners. All outstanding amounts owed to Hawthorn Suites By Wyndham and its affiliates by the franchisee, their owners, their affiliates, the transferee, its owners, and its affiliates must be paid under the existing agreement or otherwise. Only once these conditions are met will Hawthorn Suites By Wyndham's consent to the transfer become effective. Hawthorn Suites By Wyndham may also require structural changes to the Facility if it no longer meets System Standards for entering conversion facilities, or, in the alternative, condition their approval of the Transfer on limiting the transferee's term to the balance of your Term, or adding a right to terminate without cause exercisable by either party after a period of time has elapsed.