factual

What is the significance of the date entered into the Three-Party Agreement for Hawthorn Suites By Wyndham?

Hawthorn_Suites_By_Wyndham Franchise · 2025 FDD

Answer from 2025 FDD Document

This Three-Party Agreement (the "Agreement") is made and entered into as of, 20 by
and among
("Lender");
("Franchisee"); and
("Franchisor" or "Company").
Lender, Franchisee, and Franchisor each are referred to as a "Party" and collectively are referred to as the
"Parties."
RECITALS
A.
The Franchise Agreement. Franchisee and Franchisor entered into that certain franchise,
license or membership agreement, dated, 20
(the "Franchise Agreement"), related to a
guest lodging facility located at, designated as Unit #
(the "Facility"). The Franchise
Agreement and certain ancillary agreements related to the Franchise Agreement collectively are referred to
as the "Primary Agreements." Pursuant to the Primary Agreements, Franchisee operates the Facility as a
® franchised location. Capitalized terms used and not defined in this Agreement shall have the
meanings given to them in the Franchise Agreement.
B.
The Loan. Lender has advanced or is about to advance funds to Franchisee and desires to be
granted certain rights in respect of the Franchise Agreement
as part of the collateral security for its loan.
Franchisee has requested that Company consent to the conveyance of a security interest in the Franchise
Agreement and grant certain other rights to Lender. Company will issue its consent to the collateral assignment
of the Franchise Agreement and will grant such rights subject to the terms and
conditions
of this Agreement
and the undertakings by Lender and Franchisee set forth below.
AGREEMENT
NOW,
THEREFORE,
in
consideration
of
the
foregoing
and
the
terms,
conditions,
representations, promises, covenants, and consideration set forth below, the sufficiency of which are hereby
acknowledged as good, valuable, and adequate consideration, and intending to be legally bound, the Parties
agree as follows:
1.
Status of Primary Agreements.
1.1
Company and Franchisee represent that the Primary Agreements
are
in
full
force
and
effect
and
there
are
no
uncured
notices
of
default issued by Company or Franchisee under the Primary Agreements as of
the date of thisAgreement.
1.2
This Agreement is not intended to be, nor shall it be construed to create, a novation, accord
and satisfaction, or compromise of the obligations of Franchisee under the Primary Agreements or any other
obligation of Franchisee or any Guaranty to Company. Franchisee agrees that the terms of the Franchise
Agreement shall be strictly adhered to on and after the date of this Agreement.
2.
Company Consent; No Representations or Warranties.
2.1.
Company consents to the collateral assignment of, and granting of a security interest in, the

Source: Item 22 — CONTRACTS (FDD page 92)

What This Means (2025 FDD)

According to Hawthorn Suites By Wyndham's 2025 Franchise Disclosure Document, the date entered into the Three-Party Agreement establishes the agreement's effective start date. This date is crucial because it signifies when the lender, franchisee, and franchisor (Hawthorn Suites By Wyndham) formally agree to the terms outlined in the document. The Three-Party Agreement outlines the rights and responsibilities of each party, especially concerning the lender's security interest in the Franchise Agreement.

The date confirms that, as of that day, the Primary Agreements (including the Franchise Agreement) are in full force and effect, with no outstanding default notices. This assurance is vital for the lender, as it validates the underlying agreement upon which their loan is secured. The agreement explicitly states that it does not release the franchisee from their obligations under the Primary Agreements, ensuring that the terms of the Franchise Agreement remain strictly enforced from that date forward.

For a prospective Hawthorn Suites By Wyndham franchisee, this means the date on the Three-Party Agreement is not just a formality but a confirmation that all parties are aligned and that the franchise is in good standing with no known defaults at that time. It also clarifies that the franchisee remains fully responsible for adhering to the Franchise Agreement terms, even with the lender's involvement. This agreement protects Hawthorn Suites By Wyndham by ensuring the franchisee is still responsible for adhering to the original agreement.

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.
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