Can a client assign or transfer their Atwell Suites agreement without written consent from SCH?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
17. Assignment.
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
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, a client is restricted from assigning or transferring their agreement without obtaining prior written consent from SCH. Specifically, Item 17 of the agreement states this condition, emphasizing the need for franchisor approval before any transfer of the agreement or its interests. This requirement ensures that Atwell Suites maintains control over who operates its franchises and upholds brand standards.
This provision is typical in franchising, as franchisors like Atwell Suites need to approve any changes in ownership or management to protect their brand and ensure that new operators meet their standards. The written consent requirement allows Atwell Suites to evaluate potential assignees or transferees, assessing their financial stability, business acumen, and commitment to the Atwell Suites brand. Without this clause, franchisees could transfer their agreements to unqualified parties, potentially harming the brand's reputation and the performance of the franchise system.
For a prospective Atwell Suites franchisee, this means that if they wish to sell their franchise or transfer the agreement to another party, they must first seek and obtain written approval from SCH. This process may involve providing detailed information about the proposed transferee, including their financial background and business experience. SCH's decision to grant or deny consent will likely depend on whether the transferee meets the franchisor's criteria for a qualified franchisee. This restriction is in place to safeguard the Atwell Suites brand and maintain consistency across all franchise locations.
While the FDD excerpt specifies that client cannot assign or transfer the agreement without prior written consent from SCH, it does not detail the specific conditions under which SCH might grant or withhold this consent. A prospective franchisee should inquire with Atwell Suites about the criteria and process for obtaining consent to assignment, including any fees or requirements associated with the transfer. Understanding these conditions is crucial for franchisees planning for future exit strategies or changes in ownership.