What consideration does SCH receive from long-distance telecommunication service providers like AT&T and Verizon in connection with their sales to Atwell Suites franchisees?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
SCH has negotiated rates which are on file with the Federal Communications Commission with certain providers of long-distance telecommunication services to Brand System licensees, such as AT&T and Verizon, in consideration for assistance, program support or other services SCH renders to the providers in connection with their sales to licensees. You do not have to use these providers.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 65–73)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, SCH negotiates rates with long-distance telecommunication service providers such as AT&T and Verizon for the benefit of Brand System licensees. In return for assistance, program support, or other services that SCH provides to these telecommunication providers related to their sales to Atwell Suites franchisees, SCH receives consideration. However, Atwell Suites franchisees are not obligated to use these providers and can choose other options.
This arrangement allows SCH to leverage its relationship with telecommunication providers to potentially secure favorable rates or services for Atwell Suites franchisees. It also creates a revenue stream for SCH in exchange for the support services it offers to these providers.
Prospective franchisees should inquire about the specific types of assistance, program support, or other services SCH provides to these providers, as well as the nature and amount of consideration SCH receives. Understanding these details can help franchisees assess the potential benefits and any associated obligations related to these telecommunication services.