For Atwell Suites, are amounts due to or from affiliates interest-bearing, and do they have a stated maturity date?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
All amounts due to or from affiliates, other than a line of credit from an affiliate (see Note 5), are non-interest-bearing and have no stated maturity date.
The line of credit facility is currently $1.0 billion with a maturity date of 31 March 2027 and accrues interest at the IRS applicable federal interest rate compounded monthly. As of December 31, 2024 and 2023, $770.6 million and $702.1 million, respectively, remained receivable from Six Continents Hotels, Inc. These amounts include interest receivable. During the years ended December 31, 2024, 2023 and 2022, $29.6 million, $27.8 million and $13.3 million, respectively, were recognized as interest income on the line of credit. There have been no related fees and costs incurred on the line of credit in any of the years. On the maturity date, the entire outstanding principal balance, together with all accrued and unpaid interest, are due and payable in full.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, generally, amounts due to or from its affiliates are non-interest bearing and do not have a stated maturity date. However, there is an exception regarding a line of credit from an affiliate.
The FDD states that Six Continents Hotels, Inc. maintains marketing, reservation, and loyalty programs for the benefit of the Atwell Suites system. Company assessments to franchisees relating to these programs are remitted to Six Continents Hotels, Inc., and are not included in franchise royalty fees.
The line of credit facility is currently $1.0 billion with a maturity date of 31 March 2027 and accrues interest at the IRS applicable federal interest rate compounded monthly. As of December 31, 2024 and 2023, $770.6 million and $702.1 million, respectively, remained receivable from Six Continents Hotels, Inc. These amounts include interest receivable. During the years ended December 31, 2024, 2023 and 2022, $29.6 million, $27.8 million and $13.3 million, respectively, were recognized as interest income on the line of credit. On the maturity date, the entire outstanding principal balance, together with all accrued and unpaid interest, are due and payable in full.