According to the Atwell Suites F
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
nstitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
| Lease costs for the years ended December 31, 2024, 2023 and 2022 were (in thousands): | | | | | |---|---|---|---|---| | | 2024 | 2023 | 2022 | | | Operating lease expense for fixed payments | | $ 10,959 $ 11,451 $ 11,926 | | | | | 543 | 528 | 344 | | | Variable lease expense | | | | | | Short-term lease cost | 197 | 574 | 151 | | | Sub-lease income | (3,428) | (2,967) | (2,275) | | | Sub-lease interest income | (393) | (118) | - | | | Finance lease expense: | | | | | | | Depreciation of assets | 3,657 | 3,657 | 3,658 | | | Interest on lease liabilities | 23,205 | 23,021 | 22,854 | Hawaii Amendment
Amendment To The Holiday Hospitality Franchising, LLC Atwell Suites License Agreement Pursuant To the Illinois Franchise Disclosure Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to this License (and, have generally been made applicable by execution of a similar Amendment to each license for an Atwell Suites Hotel issued in, or for properties in, the State of Illinois):
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- Notice Required By Law: The terms and conditions under which your License can be terminated and your rights upon non-renewal may be affected by Illinois law, 815 ILCS 705/19 and 705/20.
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- In accordance with the provision under federal bankruptcy law (11 U.S.C.A. sec. 101, et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be am
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, several amendments to the standard license agreement exist for franchisees operating in specific states. These amendments address various legal and regulatory requirements specific to those states, potentially impacting the franchisee's rights and obligations.
For instance, franchisees in Hawaii, Maryland, and North Dakota are provided additional protection; the general release language in the standard license agreement does not relieve IHG (the franchisor) from liability imposed by franchise laws in those states. This ensures that Atwell Suites franchisees in these states retain their legal rights and recourse under state franchise laws, regardless of any general release clauses in the agreement. Additionally, franchisees in Minnesota are entitled to indemnification against third-party claims resulting from trademark infringement related to the use of IHG's trademark, provided they notify IHG of such claims within ten days and allow IHG to manage the defense.
Amendments also address the enforceability of certain provisions under federal bankruptcy law, clarifying that such provisions are subject to bankruptcy law and court rulings. Furthermore, certain states like Virginia, California, and Rhode Island have specific laws protecting franchisees from termination without reasonable cause or undue influence, and some states invalidate clauses that designate jurisdiction or venue outside of the state. For example, North Dakota deletes liquidated damages and termination penalty provisions from licenses issued in that state. Illinois franchisees must pay IHG Rewards Club Marketing Contributions equal to a monthly charge of 4.55% of Qualifying Full Folio Revenue and 1.365% of Qualifying Room and Meeting Revenue from IHG Rewards Club members. There is also a one-time charge of $10.00 per room with the first Royalty payment.
These state-specific amendments highlight the importance of franchisees understanding the specific legal landscape in their operating state and how it modifies the standard franchise agreement. Prospective Atwell Suites franchisees should carefully review these amendments and seek legal counsel to fully understand their rights and obligations in their particular state. The franchisor's right to modify standards is also noted, and these modifications can be delivered in hard copy or electronically, with the franchisee bearing any costs to access electronic versions.