Are there any third-party beneficiaries to the Hawthorn Suites By Wyndham agreement?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
You further agree that our third-party vendor, IDeaS, shall be a third-party beneficiary of this Supplement and you shall be responsible to, and shall indemnify and hold harmless, both us and IDeaS for any liability or damage incurred or arising from or related to use of the RevIQ Products and/or Services by you or your Permitted Users in a manner that violates the RevIQ System Use Restrictions.
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, a third-party vendor, IDeaS, is designated as a third-party beneficiary to a supplement regarding RevIQ System Use Restrictions. This means that IDeaS has specific rights and protections under the franchise agreement related to the franchisee's use of the RevIQ system.
Specifically, the agreement states that the franchisee is responsible to and must indemnify and hold harmless both Hawthorn Suites By Wyndham and IDeaS for any liability or damage incurred or arising from the use of the RevIQ Products and/or Services by the franchisee or its permitted users in a manner that violates the RevIQ System Use Restrictions. This clause gives IDeaS the legal standing to directly pursue damages or indemnification from the franchisee if the franchisee violates the RevIQ System Use Restrictions.
This arrangement is not uncommon in franchising, particularly when specialized software or systems are integrated into the franchise operation. By including third-party beneficiary clauses, franchisors ensure that their vendors have recourse against franchisees who misuse or damage the vendor's products, thereby protecting the vendor's interests and maintaining the integrity of the system. A prospective Hawthorn Suites By Wyndham franchisee should carefully review the RevIQ System Use Restrictions and understand their obligations to both Hawthorn Suites By Wyndham and IDeaS to avoid potential liabilities.