Does Hawthorn Suites By Wyndham have the right to license or sublicense the PMS to franchisees?

According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, Hawthorn Suites By Wyndham has an agreement with Oracle to provide cloud-based property management solutions. Specifically, Hawthorn Suites By Wyndham can license or sublicense the OPERA PMS (Property Management System) to franchisees. This license is for the term of the Franchise Agreement, but is subject to obsolescence or early termination of the agreement between Hawthorn Suites By Wyndham and Oracle. Further details regarding the limitations on the use of the OPERA PMS are available in Exhibit C-2 of the Franchise Disclosure Document.

For a prospective Hawthorn Suites By Wyndham franchisee, this means they will be required to use the OPERA PMS software for property management, and Hawthorn Suites By Wyndham controls the licensing of this software. The franchisee's right to use the software is tied to the term of the Franchise Agreement, so if the agreement is terminated early, the franchisee may lose the right to use the software. Additionally, if Hawthorn Suites By Wyndham's agreement with Oracle is terminated, the franchisee's access to the OPERA PMS may also be affected.

This arrangement is fairly common in franchising, where franchisors often mandate the use of specific software or systems to ensure consistency and efficiency across all franchise locations. However, it's important for franchisees to understand the terms and conditions of the software license, including any limitations on use and the potential for termination. Prospective franchisees should carefully review Exhibit C-2 of the Franchise Disclosure Document to fully understand the limitations on the use of the OPERA PMS software.