From when to when are the Royalty Fees payable for a Hawthorn Suites By Wyndham franchise?

According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, Royalty Fees are payable from the Hawthorn Suites By Wyndham facility's opening date until the expiration or sooner termination of the Franchise Agreement. The Royalty Fee is 5.5% of Gross Room Revenues (GRR). These fees are paid monthly, specifically on the 3rd day of the next month.

For a prospective Hawthorn Suites By Wyndham franchisee, this means that royalty payments begin as soon as the hotel opens and continue throughout the entire term of the franchise agreement. It is crucial to factor this ongoing expense into the financial projections for the business. The monthly payment schedule requires careful management of cash flow to ensure timely payments and avoid potential penalties or default.

The Royalty Fee is calculated as a percentage of gross room revenues, which includes all revenues from guest room rentals, including credit transactions and guaranteed no-show revenue, net of chargebacks. However, it excludes revenues from food and beverage, telephone charges, key forfeitures, entertainment, vending machine receipts, and certain taxes. Understanding what constitutes GRR is essential for accurate royalty calculations and financial reporting.

Franchisees should be aware that the obligation to pay royalties ceases only upon the formal expiration or termination of the franchise agreement. Any early termination, whether by the franchisee or the franchisor, could trigger additional financial obligations, such as liquidated damages, as outlined elsewhere in the Franchise Agreement. Therefore, understanding the terms of the Franchise Agreement is critical for managing the financial aspects of the Hawthorn Suites By Wyndham franchise.