What was the allowance for credit losses for Atwell Suites at December 31, 2022, 2023, and 2024?

According to Atwell Suites' 2025 Franchise Disclosure Document, the allowance for credit losses at December 31, 2022, 2023, and 2024 was $0. This means that Atwell Suites did not allocate any funds to cover potential losses from uncollectible accounts receivable during these years. This is due to an agreement with Six Continents Hotels, Inc., effective January 1, 2022, where the responsibility for covering expected lifetime credit losses was shifted to Atwell Suites' parent company.

Prior to this agreement, Atwell Suites had an allowance for credit losses. Specifically, the balance at December 31, 2021, was $11,930,910. This entire amount was then released to the income statement in the year ending December 31, 2022, as the responsibility shifted. The FDD indicates that amendments to the agreement as of January 1, 2024, did not change this arrangement.

For a prospective franchisee, this detail indicates that Atwell Suites' financial statements reflect a specific agreement regarding credit loss coverage. While Atwell Suites itself reports no allowance for credit losses in recent years, potential franchisees may want to understand the broader financial structure and agreements in place between Atwell Suites and its parent company to fully assess financial risks and responsibilities.