Who is responsible for post-termination obligations after a transfer of a Hawthorn Suites By Wyndham facility?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
Your Franchise is subject to Termination when the Transfer occurs. The Franchise is not transferable to your transferee, who has no right or authorization to use the System and the Marks when you transfer ownership or possession of the Facility. The transferee may not operate the Facility under the System, and you are responsible for performing the post-Termination obligations in Section 13.
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, the franchisee is responsible for performing the post-termination obligations outlined in Section 13 after a transfer of the facility. This means that even after the franchisee transfers ownership or possession of the Hawthorn Suites By Wyndham facility, they remain accountable for fulfilling the duties associated with the termination of the franchise agreement. The new transferee does not have the right to use the Hawthorn Suites By Wyndham system or marks.
These post-termination obligations typically involve ceasing the use of the Hawthorn Suites By Wyndham system to operate and identify the facility. This includes removing all signage and items bearing any of the brand's marks, as well as following the steps detailed in the System Standards Manual for changing the identification of the facility. The franchisee must also promptly paint over or remove the facility's distinctive trade dress, color schemes, and architectural features to ensure it no longer resembles a Hawthorn Suites By Wyndham property.
Furthermore, the franchisee is prohibited from identifying the facility with a confusingly similar mark or name, or using the same colors as the system's trade dress for signage, printed materials, and painted surfaces. They must also cease all Internet marketing using any of the Hawthorn Suites By Wyndham marks to identify the facility. Failure to comply with these de-identification requirements may result in a royalty payment of $2,000 per day until the de-identification is completed to Hawthorn Suites By Wyndham's satisfaction.
Finally, the franchisee must take action to cancel any assumed name or equivalent registration that contains the name "Hawthorn" or any variation thereof, providing evidence of compliance within thirty days after the termination or expiration of the agreement. This ensures that the facility is completely disassociated from the Hawthorn Suites By Wyndham brand following the transfer.