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Hawthorn

Hawthorn

The total investment to open a Hawthorn franchise ranges from $280,000 to $620,000. The initial franchise fee is $49,500. Ongoing royalties are 4.75% plus a 2% advertising fee.

What is the Hawthorn franchise?

Hawthorn operates in the Hotels except Casino Hotels and Motels category, a hospitality sector that supports global commerce and tourism. The market serves business travelers, leisure tourists, families, and extended stay guests with lodging intended to be reliable, comfortable, and accessible. Hawthorn has 45 total units, giving the franchise an established presence in this competitive market. Its unit count reflects an operating approach focused on specific guest needs across different geographic locations.

Hawthorn has a Loan Activity Score of 33, a measure often used to assess parts of a franchise system’s health and franchisee satisfaction. The factors behind that score require further analysis, but it gives prospective investors a specific point of reference when reviewing the franchise. A brand with 45 units generally points to an emphasis on consistent service and a defined value proposition. Hawthorn may distinguish itself through its guest experience, amenities, or location strategy.

Hotels and motels outside the casino segment require effective operations, marketing, and a clear understanding of traveler preferences. Hawthorn participates in this market by providing accommodations intended to meet those demands, whether guests need a room for one night or an extended stay. The lodging experience remains central to building loyalty and supporting sustained success in a field where guest reviews and reputation increasingly influence bookings and revenue.

Loan Activity Score

33/100

SBA Default Rate

10.7%

Active Lenders

45

According to its Franchise Disclosure Document or public business records, Hawthorn has 48 locations, all owned by franchisees. Public SBA loan records show 45 lenders made 56 loans to franchisees of Hawthorn. PeerSense calculates Hawthorn's score as 33 out of 100, using public SBA loan performance and recent lending activity. Cost figures are based on the 2024 Franchise Disclosure Document.

48 locations

Investment

$280,000 to $620,000

Franchise Fee

$49,500

Total Units

48

48 franchised

Loan Activity Score
High
33
SBA Lending
10
Lender Quality
3
Transparency
8
Reach
9
Momentum
3

Proprietary PeerSense metric

Limited
Capital Sources
45SBA lenders

Distinct lenders in public SBA records for Hawthorn

56

Total SBA loans

$1.8M

Average loan size

Source: public SBA 7(a) and 504 loan records through December 31, 2025

Referral fee at closing

SBA Lending Activity for Hawthorn

Loan Activity Score Breakdown

Established (25 to 99 loans)

High Confidence
33out of 100
Limited
Market Momentum3/35

Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.

Loan Safety10/25

Blended default rate (recent + all time) compared to NAICS sector peers.

Lender Confidence3/15

Quality lenders actively backing this brand, with penalty for lender pullback.

Transparency8/15

FDD availability, Item 19 disclosure, and overall data completeness.

Footprint9/10

Geographic spread of SBA funded locations across states.

SBA Lending Performance

SBA Default Rate

10.7%

vs 10.3% peer avg

SBA Loans

56

Total Volume

$98.2M

Active Lenders

45

States

16

vs. SBA Sector Average

-0.4%higher default rate

SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors

Key Highlights

Data Insights

Key performance metrics for Hawthorn based on SBA lending data

SBA Default Rate

10.7%

0.4% above peer avg

SBA Loan Volume

56 loans

Across 45 lenders

Lender Diversity

45 lenders

Avg 1.2 loans per lender

Investment Tier

Significant investment

$280,000 to $620,000 total

Hawthorn: Deep SBA Data

Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.

Peak SBA Year

2002

7 approvals. The best year on record for Hawthorn.

Top SBA State

Texas

19 SBA financed Hawthorn locations, the densest operator footprint.

Average Loan Size

$2.2M

Median $3.3M. Use as a sizing anchor when modeling your own Hawthorn unit.

Lender Concentration

25%

Moderately Spread

Share of Hawthorn approvals captured by the top 3 SBA lenders.

Hawthorn's SBA lending pipeline peaked in 2002 (7 approvals). The last five fiscal years account for 14% of cumulative volume ($25M approved). Operator density is highest in Texas with 19 SBA financed locations. Average funded ticket sits at $2.2M, with the median at $3.3M. Lender mix is moderately spread: the top three SBA lenders account for 25% of approvals. Meaningful choice exists, but specific lenders carry the brand.

Payment Estimator

Loan Amount$224K
Interest Rate9.5%
Term (Years)10 yr

Estimated Monthly Payment

$2,899

Principal & Interest only

Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.

Locations

Hawthorn, unit breakdown

Total Units
N/A
Franchisee Owned
n/a
System Owned
n/a
Closed
n/a

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3 FDDs Available for Hawthorn

Review franchise fees, investment ranges, royalties, Item 19 financial data, and year over year trends. Request complimentary access through your PeerSense funding advisor.

Hawthorn

Page Review

Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense

  • PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
  • Edward L. Freeman founded PeerSense in January 2020.
  • He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
  • His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
  • In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page

Last reviewed LinkedIn profileAbout Edward Freeman