When are the Royalty Fees due for a Hawthorn Suites By Wyndham franchise?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
| Name of Fee | Amount | Due Date | Remarks 1 |
|---|---|---|---|
| General 1 | Fees | ||
| Royalty Fees | 5.5% of GRR. 2 | Monthly on the 3rd day of the next month. | Payable from Opening Date until the expiration or sooner termination of your Franchise Agreement. |
Source: Item 6 — OTHER FEES (FDD pages 27–44)
What This Means (2025 FDD)
According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, Royalty Fees are due monthly. Specifically, the Royalty Fees, which are 5.5% of Gross Room Revenues (GRR), are due on the 3rd day of the next month. This payment schedule begins from the Hawthorn Suites By Wyndham franchise's opening date and continues until the expiration or earlier termination of the Franchise Agreement.
It is important for prospective Hawthorn Suites By Wyndham franchisees to understand how Gross Room Revenues are defined, as this forms the basis for calculating the Royalty Fees. GRR includes revenues from guest room rentals, credit transactions, guaranteed no-show revenue, and business interruption insurance proceeds related to loss of room revenues, net of chargebacks from credit card issuers. However, GRR excludes separate charges for food and beverage, telephone calls, key forfeitures, entertainment, vending machine receipts, and certain taxes.
Understanding the due dates and calculation of Royalty Fees is crucial for managing the financial obligations of a Hawthorn Suites By Wyndham franchise. Franchisees should ensure they have systems in place to accurately track Gross Room Revenues and remit the required Royalty Fees on time to avoid potential penalties or disruptions to their franchise agreement.