conditional

When does the Term of the Hawthorn Suites By Wyndham agreement automatically terminate?

Hawthorn_Suites_By_Wyndham Franchise · 2025 FDD

Answer from 2025 FDD Document

d. A new Section 11.2(16) is hereby added to the Hawthorn Agreement as follows:

or (16) the La Quinta Agreement expires or is terminated for any reason (except Casualty or Condemnation), and you fail to convert the guest rooms previously operated under the La Quinta Agreement to be operated under this Agreement or an agreement with another franchisor operating in a similar chain scale owned by WHG."

Source: Item 23 — RECEIPTS (FDD pages 92–402)

What This Means (2025 FDD)

According to the 2025 Hawthorn Suites By Wyndham FDD, a new section is added to the Hawthorn Agreement specifying an additional condition for automatic termination related to dual-branded facilities. Specifically, if a Hawthorn Suites By Wyndham franchisee also operates a La Quinta by Wyndham and the La Quinta agreement expires or is terminated for any reason other than casualty or condemnation, the Hawthorn Suites By Wyndham agreement will automatically terminate. However, this termination is conditional.

The Hawthorn Suites By Wyndham agreement will not terminate if the franchisee converts the guest rooms previously operated under the La Quinta agreement to be operated under the Hawthorn Suites By Wyndham agreement, or under an agreement with another franchisor operating in a similar chain scale owned by WHG (Wyndham Hotels & Resorts). This clause is designed to ensure the continued operation of the hotel rooms under a WHG-affiliated brand.

This condition is particularly relevant for franchisees considering or already operating dual-branded facilities. It highlights the interconnectedness of the franchise agreements and the importance of maintaining both brands in good standing. A prospective franchisee should carefully consider the implications of this clause and ensure they have a plan to maintain operations under a WHG brand in the event of a La Quinta agreement termination to avoid losing their Hawthorn Suites By Wyndham franchise.

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.