What is the 'Cancellation Fee' in the context of the IHG Direct Participation Agreement for Atwell Suites?

According to Atwell Suites' 2025 Franchise Disclosure Document, the 'Cancellation Fee' is associated with the IHG Direct Participation Agreement. Specifically, if a Participating Property cancels the required installation for the provision of services, a cancellation fee may be assessed. This fee is incurred in connection with the Site Cancellation. The franchisee is responsible for paying this Cancellation Fee to IHG when it is due.

This clause in the IHG Direct Participation Agreement means that Atwell Suites franchisees need to carefully manage the installation schedule for any services they procure through the agreement. Canceling an installation can lead to unexpected costs, impacting the franchisee's budget. It is important for franchisees to coordinate closely with IHG and any suppliers to ensure that the site is ready for installation as scheduled to avoid these potential cancellation fees.

While the FDD mentions the possibility of a Cancellation Fee, it does not specify the amount or how it is calculated. As a result, prospective Atwell Suites franchisees should seek clarification from IHG regarding the specific terms and conditions related to cancellation fees, including the potential amount, the circumstances under which it is applied, and any possible exceptions or waivers. Understanding these details is crucial for making informed financial decisions and avoiding unforeseen expenses during the franchise operation.