Business Description

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:  1995

Franchising Since:  1995

Operating Units:
Franchised Units:	111	100%
Company-Owned Units:	0	0%
Total Operating Units:	111	100.0%
Minority Representation Units Owned by Minorities: African-American: 0 Asian-American: 0 Hispanic: 0 Native American: 0 Other: 0 Specific Minority   Program(s) in place: Although we strongly support the objectives of the NMFI, we do not yet have any specific programs in place at this time.
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: 111 100.0%

North America:
States/Provinces with the largest number of operating units:

Density	Units
1. Texas	23
2. Florida	5
3. California	9

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:	$5.6-7.4MM
Total Investment:	$5.6-7.4MM
Average Total Investment:	$6500K
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):

Preferred Sites: Free-standing Building

Other Sites:

Encourage Conversions? Yes

Earnings Claims Provided?: Yes

Franchisee Qualifications
Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:	4
General Business Experience:	4
Specific Industry Experience:	4
Formal Education:	2
Psychological Profile:	2
Personal Interview(s):	3
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
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
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
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
Training:
1. Training in Atlanta, GA	5 Days
2. Sales Training in Atlanta, GA	5 Days
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.	Request Franchisor Info   Submit an online form to receive information from Hawthorn Suites Hotels International.