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HAWTHORN SUITES is one of the fastest-growing hotel brands in the upper extended stay market. With 112 hotels open and 28 under development as of 3/30/2004, HAWTHORN continues to expand in both primary and tertiary markets. In November, 2000, HAWTHORN SUITES paretn company, U. S. Franchise Systems, was purchased by business interests of the Pritzker family. This acquisition bolstered our already strong leadership by providing powerful strategic and financial advantages.
Franchisor Background
Year Established: 1986
Franchising Since: 1986
Operating Units: |
| Franchised Units: | 106 | | 100% | | |
| Company-Owned Units: | 0 | | 0% | | |
| | ______ | | _____ | | |
| Total Operating Units: | 106 | | 100% | | |
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Geographic Distribution: |
| U.S.: | 109 | | 98.2% | | In 32 States |
| Canada: | 1 | | 0.9% | | In 0 Canadian Provinces |
| International: | 1 | | 0.9% | | In 0 Foreign Countries |
| | ______ | | _____ | | |
| Total: | 111 | | 100% | | |
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North America: |
| States/Provinces with the largest number of operating units: |
| Density | Units | | | | |
| 1. California | 9 | | 2. Florida | 5 | | 3. Texas | 23 |
Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia
Financial Requirements
Investment: |
| Minimum Net Worth: | $NA |
| Cash Investment: | $600K-1.5MM |
| Total Investment: | $5.6-7.5MM |
| Average Total Investment: | $6500K |
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Fees: |
| Initial Franchise Fee: | $40K |
| Average Franchise Fee: | $40K |
| On-Going Royalty: | 5% |
| Average Royalty: | 5% |
| Advertising Fee: | 2.5% |
Average Number of Employees: 15-20 Full-time, 0 Part-time
Space Needs (in square footage): N/A
Preferred Sites: Free-standing Building
Other Sites:
Encourage Conversions? Yes
Earnings Claims Provided? Yes
Listed in the SBA Registry? No
Support and Training
| International Franchise Association: | Yes |
| Canadian Franchise Association: | No |
| Franchisee Association/Member: | Yes, Member |
| Size of Corporate Staff: | 96 |
| Site Selection Assistance? | Yes |
| Lease Negotiation Assistance? | No |
| Financial Assistance? | Yes, Direct |
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Marketing Support: |
| Co-Op Advertising: | No |
| National Advertising: | No |
| Regional Advertising: | No |
| Local Advertising: | No |
| Marketing Materials: | None Specified |
| Additional Services: | None Specified |
| Other Marketing Support: | None Specified |
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On-Going Support: |
| Central Data Processing: | Not Applicable |
| Central Purchasing: | Not Applicable |
| Field Operation Evaluation: | Included in Fees |
| Field Training: | Included in Fees |
| Initial Store Opening: | Not Applicable |
| Inventory Control: | Not Applicable |
| Franchisee Newsletter: | Included in Fees |
| Regional or National Meetings: | At Additional Cost |
| 800 Telephone Hotline: | Included in Fees |
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Training: |
| 1. Training in Atlanta, GA | 5 Days | | 2. Sales Training in Atlanta, GA | 5 Days |
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Franchisee Qualifications
| Ranked from 1 (unimportant) to 5 (important): |
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| Financial Net Worth: | 4 |
| General Business Experience: | 4 |
| Specific Industry Experience: | 4 |
| Formal Education: | 2 |
| Psychological Profile: | 2 |
| Personal Interview(s): | 3 |
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Minority Representation
Units Owned by Minorities: |
| African-American: | N/A |
| Asian-American: | N/A |
| Hispanic: | N/A |
| Native American: | N/A |
| Other: | N/A |
| Specific Minority: | Although we strongly support the objectives of the NMFI, we do not yet have any specific programs in place at this time. |
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Terms of Contract
| Term of Initial Contract: | 20 Year(s) |
| Term of Renewal Period: | 10 Year(s) |
| Passive Ownership: | Allowed |
| Area Development Agreements? | No |
| Sub-Franchising Contracts? | No |
| Franchisees Allowed to Expand Within Territory? | Yes |
Expansion Plans
Projected New Units Over Next 12 months: 25
| U.S.: | Yes, All United States |
| Canada: | Yes, All Canada |
| Overseas: | Yes, Europe, South America, Latin America. |
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