FRANCHISE DISCLOSURE DOCUMENT HAMPTON INNS ...

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TYPE OF FEE
AMOUNT
DUE DATE
REMARKS
Procurement and
Service Fees
If you buy from HSM, you
will pay product cost plus
a procurement fee of
10%.
Within 10 days of
billing.
objectives of hotel management and
ownership.
* Unless otherwise indicated, all fees described in this Item 6 are payable to, and imposed by, us or
our affiliates and are non-refundable.
NOTES
[1] "Gross Rooms Revenue" means all revenues derived from the sale or rental of guest rooms
(both transient and permanent) of the hotel, including revenue derived from the redemption of points
or rewards under the loyalty programs in which the Hotel participates, amounts attributable to
breakfast (where the guest room rate includes breakfast), and guaranteed no-show revenue and
credit transactions, whether or not collected, at the actual rates charged, less allowances for any
Guest Room rebates and overcharges, and will not include taxes collected directly from patrons or
guests. If there is a fire or other insured casualty at your hotel that results in a reduction of Gross
Rooms Revenue, the Monthly Program and Monthly Royalty Fees will be equal to the Monthly
Program and Monthly Royalty forecasted on the basis of the Gross Rooms Revenue amount you
agree upon with your insurer(s). However, we have the right to participate with you in negotiating the
value of your Gross Rooms Revenue claim with your insurer(s). Group booking rebates, if any, paid
by you or on your behalf to third-party groups for group stays must be included, and not deducted
from, the calculation of Gross Rooms Revenue.
We can require you to transmit all payments required under the Franchise License Agreement by wire
transfer or other form of electronic funds transfer. You must bear all costs of wire transfer or other
form of electronic funds transfer. We occasionally reduce the Monthly Royalty Fee for multi-unit or
more experienced licensees, for licensees with whom we have previously dealt, for conversions, or for
licensees in other unique circumstances. However, we do not always do so and may choose not to
reduce your Monthly Royalty Fee, even if you possess some or all of these characteristics.
If you execute a Franchise License Agreement for a new System hotel on or after March 31, 2011,
you will pay a Monthly Royalty Fee of 6% of Gross Rooms Revenue. If we choose to relicense your
hotel, your fees will be at our then current rate for new franchisees.
If you executed a Franchise License Agreement for a System hotel on April 1, 2005 through March
30, 2011, your current Monthly Royalty Fee is 5% of Gross Rooms Revenue. If we choose to
relicense your hotel, the Monthly Royalty Fee will increase to 6% (or whatever the standard Monthly
Royalty Fee rate is at the time relicensing occurs) of Gross Rooms Revenue.
If you are an existing franchisee under a Franchise License Agreement executed prior to April 1,
2005, your Monthly Royalty Fee is 4% of Gross Rooms Revenue. If we chose to relicense your hotel,
and the relicensing does not involve a Change of Ownership event (as defined in the Franchise
License Agreement), then we will freeze the Monthly Royalty Fee at 4% of Gross Rooms Revenue for
the period during the relicensing term beginning upon execution of the new Franchise License
Agreement through the 25 th anniversary of the date the hotel first began operating as a System hotel.
After the 25 th anniversary of the date the hotel first began operating as a System hotel, the Monthly
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March 31, 2011 Hampton
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