What is the relationship between the Hawthorn Suites By Wyndham Assignment and Assumption Agreement and the Guaranty?

According to the 2025 Hawthorn Suites By Wyndham FDD, the Assignment and Assumption Agreement and the Guaranty are related documents included as exhibits to the disclosure document. Specifically, they are listed together as part of Exhibit C-1. This exhibit also includes the Franchise Agreement, Initial Fee Note, Development Incentive Note, and State Addenda and Franchise Application.

The Assignment and Assumption Agreement would likely govern the process and conditions under which a franchisee can transfer their rights and obligations under the Franchise Agreement to another party, while the Guaranty ensures that the financial and performance obligations of the franchisee are met, often backed by a personal guarantee from the franchisee or another entity. The Guaranty ensures that even if the franchise is transferred via the Assignment and Assumption Agreement, there is still a party responsible for the franchise's obligations.

For a prospective Hawthorn Suites By Wyndham franchisee, understanding both documents is crucial. The Assignment and Assumption Agreement outlines the exit strategy if they decide to sell the franchise, while the Guaranty represents a significant financial commitment. It is important to review these documents carefully with a legal and financial advisor to fully understand the obligations and potential liabilities.