What does Atwell Suites consider a material breach of the Licensee's obligations under the License agreement?

According to the 2025 Atwell Suites Franchise Disclosure Document, a material breach of the Licensee's obligations includes failure to perform construction, upgrading, and renovation work as required by IHG. This encompasses not purchasing the required furniture, fixtures, and equipment as detailed in Attachment "B" of the License agreement. IHG considers the Licensee's agreement to perform this work essential for entering into the License agreement.

Even if Atwell Suites allows the Licensee to use the Brand System before the work is completed, the Licensee must still be actively meeting their performance obligations in full compliance with Attachment "B". The Licensee cannot begin operating the Brand System, or any part of it, at the hotel until they receive written authorization from IHG.

Therefore, it is crucial for prospective Atwell Suites franchisees to carefully review Attachments "A" and "B" of the License agreement, which specify the progress, milestone, completion, and other dates for the construction, upgrading, and renovation work. Failure to meet these requirements and specifications constitutes a material breach of the Licensee's obligations, potentially leading to termination of the License agreement.