Besides the prohibition on assignment, who does the Atwell Suites agreement apply to?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Client shall not assign or otherwise transfer this Agreement or any of its interest in this Agreement without the prior written consent of SCH. Except for the prohibition on assignment contained in the preceding sentence, this Agreement shall be binding upon and inure to the benefits of the heirs, successors and assigns of the parties hereto.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the agreement is binding upon and benefits the heirs, successors, and assigns of the parties involved, in addition to the prohibition on assignment.
This means that while franchisees cannot freely transfer or assign their agreement without prior written consent from SCH (Six Continents Hotels, Inc.), the agreement remains effective and applicable to those who inherit the franchise, take over the business as a successor, or are legally assigned the rights and responsibilities, assuming SCH's consent is obtained for the assignment.
This clause ensures that the Atwell Suites franchise agreement continues to be enforceable even if the original franchisee is no longer directly involved, providing a level of continuity and legal clarity for all parties concerned. However, it's crucial to note the explicit restriction on assignment without SCH's approval, which gives Atwell Suites control over who can operate a franchise under their brand.