Howard Johnson by Wyndham

Can you provide details on the 3 pending litigation cases, including their nature and expected timeline for resolution?

What specific operational or financial issues led to the 12-14 unit closures each year from 2021-2023, and has the franchisor identified strategies to address the declining unit count?

Given the 8.4% turnover rate exceeds the typical range for hospitality franchises, what support or modifications has the franchisor made to improve unit retention?

The franchise term is 15 years with no renewal options—what happens to franchisees at the end of their term, and are there any discussions about extending or renewing arrangements?

Why does the Ad Fund Rate of 2.0% fall below the industry typical range of 2.25-3.5%, and how does this lower rate impact marketing support and brand initiatives?

Can you clarify the 15 non-curable defaults listed in the termination clause, and which defaults have been most frequently cited in past terminations?

The franchisor requires personal guarantees from all owners and spousal guarantees in community property states—what recourse exists if a franchisee encounters financial hardship?

How many of the 4 litigation cases over the past 3 years were initiated by the franchisor, and what were the outcomes or reasons for settlement?

Since territory is protected but not exclusive, under what circumstances might the franchisor allow a competing hotel brand or another Howard Johnson location within the protected territory?

What is the franchisor's policy on helping struggling locations with operational improvements or financial restructuring before closure becomes necessary?

Given that System Health scores at 37 (below the typical range), what specific initiatives is the franchisor implementing to improve system stability and unit viability?

Can you provide a breakdown of the 12-14 annual closures by reason (e.g., owner retirement, poor performance, inability to meet standards, economic factors)?

The renewal conditions clause states no renewal rights exist—has the franchisor considered offering renewal options to improve franchisee long-term commitment?

What training, technology, and operational support does the $699 annual technology fee cover, and how does this compare to other hotel franchise systems?

How does Howard Johnson define 'loss of possession' as a non-curable default, and what landlord or financing situations might trigger this termination clause?

Since encroachment protection exists but territory is not exclusive, how is 'encroachment' defined and enforced if the franchisor wants to open another property nearby?

Over the past 3 years, how many closures were attributable to franchisees unable to complete required renovations or maintain brand standards versus market conditions?

What is the historical average length of time a franchisee remains in the system, and how does the 15-year fixed term (no renewal) affect long-term franchisee planning?