Hawthorn Suites

The agreement states no renewal options exist—what happens to franchisees at the end of the 20-year term, and what are the practical implications for a hotel franchise with long-term asset investments?

Can you explain the distinction between the 8 units that "ceased other" in 2022 versus the 5 that closed in 2023? What specific circumstances led to these exits?

With 2 pending litigation cases, what are the nature and claims of these cases, and do they involve systemic issues affecting multiple franchisees or unit-specific disputes?

The investment costs score of 83 is above the typical range for this category—what are the total initial investment requirements including real estate, renovations, and pre-opening costs?

Territory is protected but not exclusive—can the franchisor or other franchisees open competing Hawthorn Suites locations within my territory, and what specific geographic boundaries define my protected area?

What encroachment protection exists if the franchisor attempts to establish a competing brand (such as a Wyndham or Days Inn property) near your location?

The termination clause allows for 10-day cure periods for monetary defaults—what constitutes a monetary default, and are there any defaults that cannot be cured?

Personal guarantees and indemnification requirements are noted—does this mean franchisees are personally liable for franchisor negligence, and are there any limitations on indemnification obligations?

What specific support and training does the franchisor provide post-opening, and how are these services funded given the $734 annual technology fee and 2.5% ad fund?

Can you provide the Item 19 financial performance data, including average unit volumes, operating expenses, and profitability by unit size or location type?

How is the $734 annual technology fee allocated, and what technology services or systems does it cover?

What is the franchisor's policy on transfers if a franchisee wants to sell their unit, and are there specific buyer approval criteria beyond the $40,000 transfer fee?

Of the 3 litigation cases filed against the franchisor, what were the primary allegations, and have any resulted in settlements, judgments, or changes to franchise policies?

Given the 0.0% termination rate, has the franchisor ever exercised termination rights, and under what circumstances would termination be pursued?

The non-compete provision is listed as N/A—does this mean there are no non-compete restrictions, and can former franchisees open competing hotel brands in the same market?

What are the current market trends affecting Hawthorn Suites unit profitability, particularly in light of the 21 units that closed over the past 3 years?

Are there any franchise system-wide initiatives, capital improvement plans, or renovations required, and if so, are these mandatory and at what cost to franchisees?

How does the franchisor support marketing and revenue management for individual units, and what metrics define marketing effectiveness?