Under what conditions will the Hawthorn Suites By Wyndham agreement automatically terminate?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
- Section 11.2 of the Franchise Agreement provides that the Franchise will automatically terminate upon your bankruptcy. This provision may not be enforceable under Federal bankruptcy law (11 U.S.C. Section 101 et seq.).
Source: Item 22 — CONTRACTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Hawthorn Suites By Wyndham Franchise Disclosure Document, the franchise agreement will automatically terminate upon the franchisee's bankruptcy. However, the FDD also notes that this provision regarding automatic termination upon bankruptcy may not be enforceable under Federal bankruptcy law.
This is a critical point for prospective Hawthorn Suites By Wyndham franchisees to understand. While the franchise agreement stipulates automatic termination in the event of bankruptcy, federal law might supersede this clause, potentially offering some protection to the franchisee. It is essential to consult with a legal expert to fully understand the interplay between the franchise agreement and federal bankruptcy laws.
It is also important to note that this information is part of an addendum to the franchise agreement that applies specifically to franchises offered and sold under the laws of the State of Maryland. Franchisees in other states may have different terms and conditions regarding termination upon bankruptcy, so it is important to review the specific addenda applicable to their state.