Does the Atwell Suites agreement grant any third-party beneficiary rights, and if so, to whom?

According to the 2025 Atwell Suites Franchise Disclosure Document, the franchise agreement generally does not intend to create rights for third-party beneficiaries, except for indemnified parties. This means that individuals or entities who are not direct parties to the agreement typically cannot claim rights or benefits under it. However, an exception is made for parties who are indemnified, suggesting that these parties have specific rights related to protection against potential losses or liabilities. Any disputes involving third-party beneficiaries and IHG (InterContinental Hotels Group) must be brought through the Hotel acting in its individual capacity or as an agent of the aggrieved third-party beneficiaries.

This provision clarifies the legal standing of external parties in relation to the franchise agreement. It ensures that IHG deals directly with the franchisee (Hotel) regarding any third-party claims, streamlining dispute resolution. The franchisee acts as an intermediary, representing the interests of the third party. This arrangement protects IHG from direct legal challenges from various external entities, maintaining a clear line of communication and responsibility.

For a prospective Atwell Suites franchisee, this clause means they will be the primary point of contact for any third-party issues related to the franchise agreement. They may need to manage claims or disputes on behalf of third parties, which could involve additional administrative and legal responsibilities. Understanding this aspect is crucial for franchisees to prepare for potential liabilities and to ensure they have the resources to handle such situations effectively. Franchisees should seek clarity on what constitutes an 'indemnified party' to fully understand the scope of this exception.