How does the Atwell Suites agreement term continue after the initial term?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
SCH shall keep the Department staffed and open for business during normal business hours in the U.S. Eastern time zone, excluding holidays.
6. Term of Agreement.
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- The term of this Agreement shall commence as of January 1, 2024 , and shall continue for an initial term of twelve (12) months, provided that this Agreement is not earlier terminated as more particularly described below ("Initial Term").
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- After the Initial Term, this Agreement shall automatically renew for additional one-year Terms, although either party may terminate this Agreement without cause (a) during a renewal Term, upon 90 days prior written notice to the other party, or (b) upon notice of non-renewal of at least 30 days prior to the end of a Term. If client terminates, client's agreement may continue and may continue to be billed for services for longer than 90 days if client is not meeting the Revenue Management Certification Standard and/or any other applicable IHG Brand Standard in an alternate, approved way.
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- Termination & Change of Control. In the event of a termination or expiration of the License Agreement, SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of a "Change of Control" (defined as a change in total or complete ownership of the Hotel and/or in an event when new partial or majority ownership of the Hotel , whether by merger, investment, or acquisition, results in involvement of another party to the License Agreement that places SCH in a disadvantage if the existing terms of this Agreement are maintained), SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of such termination by SCH only Sections 2, 3, 4, 7, 8, 9, 10, 11, 13, 14 and 18 herein shall survive such termination.
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- Either party may terminate this Agreement upon providing ninety (90) days prior written notice to the other party.
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- If Client is participating with a third party intermediary (TPI) that is not certified by SCH, even if Client has obtained a waiver to participate with said non-certified TPI, this agreement shall be terminated upon notice to Client.
7. Default.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, the agreement initially lasts for twelve months, commencing on January 1, 2024. This is referred to as the "Initial Term." After this initial period, the agreement automatically renews for additional one-year terms.
However, either party (SCH or the client) has the option to terminate the agreement during any of these renewal terms. To do so, they must provide written notice to the other party. If termination occurs during a renewal term, a 90-day prior written notice is required. Alternatively, if a party chooses not to renew the agreement, they must provide notice of non-renewal at least 30 days before the end of the current term.
It's important to note that if the client terminates the agreement but is not meeting the Revenue Management Certification Standard or other applicable IHG Brand Standards, they may continue to be billed for services for longer than 90 days. This condition highlights the importance of adhering to Atwell Suites's brand standards to avoid extended billing after termination.