factual

How are assessment fees from Atwell Suites hotel owners generally levied for the System Fund?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

Assessment fees from hotel owners are generally levied as a percentage of hotel revenues but may also be volume-based or fixed monthly fees, and are recognized at the point the Company is entitled to raise the invoice.

Source: Item 23 — Receipts (FDD pages 99–486)

What This Means (2025 FDD)

According to Atwell Suites' 2025 Franchise Disclosure Document, assessment fees from hotel owners are generally levied as a percentage of hotel revenues. However, the fees may also be volume-based or fixed monthly fees. These assessment fees are recognized at the point when the company is entitled to raise the invoice.

The System Fund is used to collect and administer cash assessments from Atwell Suites hotel owners for specific purposes, including marketing, reservations, certain hotel services, and the IHG One Rewards program. The fund also receives proceeds from the sale of loyalty points under third-party co-branding arrangements and the sale of points directly to members and other third parties.

The FDD states that the System Fund is not managed to generate a surplus or deficit for the company over the longer term. Instead, it is managed for the benefit of the IHG System, which includes hotels and rooms operating under franchise and management agreements, as well as IHG-owned, leased, and managed hotels and rooms globally. The objective of the System Fund is to drive revenues for the hotels in the IHG System.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.