factual

Which sections of the Hawthorn Suites By Wyndham agreement survive termination?

Hawthorn_Suites_By_Wyndham Franchise · 2025 FDD

Answer from 2025 FDD Document

  • 13.4 Survival of Certain Provisions. Sections 3.6 (as to audits, for 2 years after Termination), the first two sentences of Section 3.11, Section 7 (as to amounts accruing through Termination), and Sections 8, 11.3.2, 11.4, 12, 13, 15, 16, and 17 survive Termination of this Agreement. Additionally, all covenants, obligations and agreements of yours that, by their terms or by implication, are to be performed after the Termination or expiration of the Term, shall survive such Termination or expiration.

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, several sections of the franchise agreement survive its termination. Specifically, Section 3.6 regarding audits (for two years post-termination), the first two sentences of Section 3.11, Section 7 pertaining to amounts accruing through termination, and Sections 8, 11.3.2, 11.4, 12, 13, 15, 16, and 17 all remain in effect even after the agreement ends.

This means that even after the franchise agreement is terminated, certain obligations and rights outlined in these sections continue to apply to both the franchisee and Hawthorn Suites By Wyndham. For example, Hawthorn Suites By Wyndham retains the right to audit the franchisee's records for up to two years after termination, ensuring compliance with financial obligations during the franchise term. Similarly, any financial obligations that accrued up to the point of termination, as detailed in Section 7, remain enforceable.

Furthermore, any covenants, obligations, and agreements that are explicitly intended to be performed after the termination or expiration of the franchise term will also survive. This ensures that both parties fulfill their post-termination responsibilities as outlined in the agreement. Prospective franchisees should carefully review these sections to understand their ongoing obligations and the franchisor's rights after the franchise agreement concludes.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.