Is the bank liable to Atwell Suites franchisees for non-bank card services under the agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Bank is not responsible for, and has no liability to you in any way with respect to, Non-Bank Card transactions or Non-Bank Services.
See Section 16.1 for additional details.
16 SPECIAL PROVISIONS REGARDING NON-BANK CARDS
16.1 Services Provided by Bank, Conveyed Transactions, and Non-Bank Services.
- (a) Services Provided by Bank. Bank only provides, and its obligations and liability are limited to, sponsorship, settlement, and related Bank services for certain Card transactions, which do not include Non-Bank Card transactions or Non-Bank Services. For avoidance of doubt, Bank is not a party to the Agreement with respect to, and does not have any responsibilities or liability with respect to, transactions that Processor sponsors and settles under the Agreement or Conveyed Transactions.
- (b) Non-Bank Services. Non-Bank Services are provided to you by Processor, not by Bank. Bank is not responsible for, and has no liability to you in any way with respect to, Non-Bank Services. The provisions of the Agreement regarding Discover Card transactions, American Express Card transactions, and other Non-Bank Services are an agreement solely between you and Processor. Non-Bank Services are subject to all terms and provisions of these Terms and Conditions. To the extent terms specific to a Non-Bank Service directly conflict with another provision of the Agreement, the terms specific to the Non-Bank Service will control with respect to such Non-Bank Service.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, the bank is not responsible for, and has no liability to franchisees regarding Non-Bank Card transactions or Non-Bank Services. The FDD specifies that the bank's obligations are limited to sponsorship, settlement, and related banking services for certain card transactions, explicitly excluding Non-Bank Card transactions or Non-Bank Services.
The FDD clarifies that Non-Bank Services are provided to the franchisee by the Processor, not the Bank. Therefore, the agreement regarding Discover Card transactions, American Express Card transactions, and other Non-Bank Services is solely between the franchisee and the Processor. These Non-Bank Services are subject to all the terms and provisions outlined in the agreement.
This means that Atwell Suites franchisees must look to the Processor, not the Bank, for any issues arising from Non-Bank Services. It is important for franchisees to understand the distinction between the Bank and the Processor and to be aware of which entity is responsible for which services under the agreement. Franchisees should carefully review the terms and conditions related to Non-Bank Services to fully understand their rights and obligations.