Does Atwell Suites allow franchisees to operate a competing business from the franchised hotel?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
any web site, without Holiday's advance written approval. You must comply with all of Holiday's web site requirements in connection with any web sites that Holiday may permits you to develop and maintain relating to your Hotel. The License does not otherwise limit the channels through which you may solicit customers for your Hotel.
The License does not limit Holiday's right or the rights of its parent, or any subsidiary or affiliate of Holiday, to use or license the Brand System or any part of the Brand System, or to engage in or license any business activity (including business activities referenced in Item 1, which sell similar products and services) or to license any other hotels (or any other hotel brands). These rights include, for example, the licensing, franchising, ownership, operation and/or management of lodging facilities and related activities under the names and marks associated with the Brand System and/or any other names and marks. There is no restriction in the License on Holiday's using any channel of distribution to solicit customers for Holiday's and its affiliates' hotels, whether operating under the marks licensed to you or other marks. Holiday and its affiliates are not restricted from establishing other licenses or companyowned outlets or other channels of distribution through which services or licenses under different trademarks might be offered. The License creates no rights of any kind for you in these other hotel brands and/or businesses at any other location. The License grants you no options, rights of first refusal or other rights to acquire additional licenses.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 92)
What This Means (2025 FDD)
The 2025 FDD for Atwell Suites does not explicitly state whether a franchisee is allowed to operate a competing business from the franchised hotel. However, the FDD does state that the license agreement does not limit Holiday's (the licensor) rights, or the rights of its parent, subsidiaries, or affiliates, to engage in any business activity, including those that sell similar products and services, or to license other hotels.
This means that Atwell Suites, its parent company, and its affiliates are not restricted from operating competing hotel brands or businesses near an Atwell Suites location. The FDD also clarifies that there is no restriction on Holiday's using any channel of distribution to solicit customers for Holiday's and its affiliates' hotels, whether operating under the marks licensed to you or other marks.
Furthermore, the FDD states that franchisees may compete with other hotels operating under the IHG Portfolio Brands in or near their area. Hotels operating under the IHG Portfolio Brands (including the same brand as your Hotel) may solicit reservations from customers in your area for which you will receive no compensation. This suggests that while franchisees may face competition from other brands under the same parent company, the document does not directly address whether a franchisee can operate a competing business from the Atwell Suites hotel itself. A prospective franchisee should seek clarification from Atwell Suites on this specific issue.