HAWTHORN SUITES Franchise
Cost, fees, owner earnings, closure rate and litigation for a HAWTHORN SUITES franchise — pulled from the franchisor's own public FDD (2024), not its sales material.
Disclosure honesty
HAWTHORN SUITES discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
Item 19 not provided in FDD excerpts submitted.
What a HAWTHORN SUITES franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $40,000 | Item 5 — paid up front, before you open |
| Royalty | 5.5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 2.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $12,229,557 – $14,165,375 | Item 7 — franchisor's own low/high estimate |
5.5% royalty + 2.5% marketing fees on GRR. Multiple ancillary fees including training, technology, quality assurance, loyalty programs.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Is HAWTHORN SUITES worth it? — how it compares to 436 similar franchises
| Ongoing fees | 8% of sales | lower than most (median 8%) |
| Startup cost | from $12,229,557 | pricier than 98% of peers |
| Disclosure honesty | Grade F | less honest than most of the category |
| Disclosed lawsuits | 1 | about average |
Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a HAWTHORN SUITES
The franchisor's framing: Item 19 not provided in FDD excerpts submitted.… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
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HAWTHORN SUITES franchise — frequently asked
- How much does a HAWTHORN SUITES franchise cost?
- The FDD lists a total initial investment of about $12,229,557–$14,165,375, including a $40,000 initial franchise fee.
- How much do HAWTHORN SUITES franchise owners make?
- HAWTHORN SUITES discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the HAWTHORN SUITES franchise fees?
- HAWTHORN SUITES' FDD discloses a $40,000 initial franchise fee, a 5.5% royalty on gross sales, a 2.5% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 5.5% royalty + 2.5% marketing fees on GRR. Multiple ancillary fees including training, technology, quality assurance, loyalty programs.
- What is the HAWTHORN SUITES franchise profit margin?
- HAWTHORN SUITES discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the HAWTHORN SUITES franchise failure rate?
- One recent franchisee breach of contract litigation filed 9/6/2023 (Item 3).
- How many HAWTHORN SUITES locations are there?
- HAWTHORN SUITES' Item 20 outlet table isn't clearly stated in the filing excerpt — request the full Item 20 before relying on any unit count.
- Does HAWTHORN SUITES have complaints or lawsuits?
- HAWTHORN SUITES discloses 1 legal matter in Item 3 of its FDD. Item 3 covers the franchisor's litigation history, which is the closest thing to a public record of how it treats franchisees — read the case descriptions, not just the count.
- Is a HAWTHORN SUITES franchise worth it?
- It depends on the numbers, not the pitch. HAWTHORN SUITES scores F on disclosure honesty, carries about 8% of sales in ongoing fees, and discloses 1 legal matters. Get the real owner take-home before you sign.
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Compare HAWTHORN SUITES to similar franchises
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Source: MN CARDS 30848-202403-02 (Clean FDD 2024). FranchiseValidate is independent and not affiliated with HAWTHORN SUITES or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.