Does WHR's guarantee of performance extend to Hawthorn Suites By Wyndham?
Hawthorn_Suites_By_Wyndham Franchise · 2025 FDDAnswer from 2025 FDD Document
For value received, WYNDHAM HOTELS & RESORTS, INC., a Delaware corporation, located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, absolutely and unconditionally guarantees the performance by its indirect subsidiary, HAWTHORN SUITES FRANCHISING, INC., a Georgia corporation, with its registered office located at 22 Sylvan Way, Parsippany, New Jersey 07054, USA, as franchisor, of all its obligations in accordance with the terms and conditions of its franchise or license agreements and other agreements issued pursuant to the Hawthorn Franchise Disclosure Document and entered into from and after the date hereof as such franchise, license and other agreements shall have been or may hereafter be amended, modified, renewed or extended from time to time. This Guaranty shall continue in force until all such obligations of HAWTHORN SUITES FRANCHISING, INC. shall have been satisfied or until such liability of HAWTHORN SUITES FRANCHISING, INC. to such franchisees or licensees has been completely discharged, whichever first occur. WYNDHAM HOTELS & RESORTS, INC. shall not be discharged from liability hereunder as long as any such claim by a franchisee or licensee against HAWTHORN SUITES FRANCHISING, INC. remains outstanding. Notice of acceptance is waived. Notice of default on the part of HAWTHORN SUITES FRANCHISING, INC. is not waived. This Guaranty shall be binding upon WYNDHAM HOTELS & RESORTS, INC., its successors and assigns.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 92)
What This Means (2025 FDD)
According to the 2025 Franchise Disclosure Document, Wyndham Hotels & Resorts, Inc. (WHR) provides a guarantee of performance for Hawthorn Suites Franchising, Inc.'s obligations under the franchise agreements. This guarantee ensures that WHR will uphold the commitments made by Hawthorn Suites Franchising, Inc. to its franchisees. This guarantee remains in effect until all obligations of Hawthorn Suites Franchising, Inc. are satisfied or their liability to franchisees is completely discharged.
Specifically, the guarantee covers the terms and conditions outlined in the franchise or license agreements and other related agreements issued under the Hawthorn Franchise Disclosure Document. These agreements may be amended, modified, renewed, or extended over time, and the guarantee applies to these changes as well. WHR will not be released from its obligations as long as any claim by a Hawthorn Suites By Wyndham franchisee against Hawthorn Suites Franchising, Inc. is outstanding.
This guarantee is a significant assurance for prospective Hawthorn Suites By Wyndham franchisees. It means that the financial strength and reputation of Wyndham Hotels & Resorts, Inc. stand behind the franchise agreement, reducing the risk for franchisees. The guarantee is binding upon Wyndham Hotels & Resorts, Inc., its successors, and assigns, providing long-term security for franchisees. However, it's important to note that while notice of acceptance of the guarantee is waived, notice of default on the part of Hawthorn Suites Franchising, Inc. is not waived, meaning WHR needs to be informed if Hawthorn Suites Franchising, Inc. fails to meet its obligations.