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SUBJECT DOSSIER · FDD 2024

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.

Other Franchises · disclosure-honesty grade · from public state filings
GRADE F · FAILS DISCLOSURE

Disclosure honesty

F
Transparency 1 / 5

HAWTHORN SUITES discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.

Outlets
Disclosed lawsuits1
Closure signals
Investment
$12,229,557–$14,165,375
Total fees
8% of sales
Outlets
Closure signals
Lawsuits
1
◢ FINDINGS
ITEM 19
No real earnings disclosure
The franchisor won't put owner profit in writing — you can't verify the pitch.
ITEM 03
1 legal matters disclosed
Litigation in Item 3 signals how the franchisor treats its franchisees.

What their own earnings claim actually says

Item 19 not provided in FDD excerpts submitted.

What a HAWTHORN SUITES franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$40,000Item 5 — paid up front, before you open
Royalty5.5% of gross salesItem 6 — charged on revenue, not profit
Advertising fund2.5% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees8% of gross salesBefore rent, labor, food or debt service
Total initial investment$12,229,557 – $14,165,375Item 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 fees8% of saleslower than most (median 8%)
Startup costfrom $12,229,557pricier than 98% of peers
Disclosure honestyGrade Fless honest than most of the category
Disclosed lawsuits1about average

Benchmarked against every other franchises franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

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.

LOW
MEDIAN
HIGH

See a full sample report → · 30-day guarantee

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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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.