What constitutes a 'competing business' in the context of an Atwell Suites franchise?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
any web site, without Holiday's advance written approval. You must comply with all of Holiday's web site requirements in connection with any web sites that Holiday may permits you to develop and maintain relating to your Hotel. The License does not otherwise limit the channels through which you may solicit customers for your Hotel.
The License does not limit Holiday's right or the rights of its parent, or any subsidiary or affiliate of Holiday, to use or license the Brand System or any part of the Brand System, or to engage in or license any business activity (including business activities referenced in Item 1, which sell similar products and services) or to license any other hotels (or any other hotel brands). These rights include, for example, the licensing, franchising, ownership, operation and/or management of lodging facilities and related activities under the names and marks associated with the Brand System and/or any other names and marks. There is no restriction in the License on Holiday's using any channel of distribution to solicit customers for Holiday's and its affiliates' hotels, whether operating under the marks licensed to you or other marks. Holiday and its affiliates are not restricted from establishing other licenses or companyowned outlets or other channels of distribution through which services or licenses under different trademarks might be offered. The License creates no rights of any kind for you in these other hotel brands and/or businesses at any other location. The License grants you no options, rights of first refusal or other rights to acquire additional licenses.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 92)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the License agreement does not restrict Holiday Hospitality Franchising, LLC (Holiday), its parent company, or any subsidiaries or affiliates from engaging in any business activity, including those that offer similar products and services as Atwell Suites. This includes the right to use or license the Brand System, license other hotels, or license any other hotel brands.
Specifically, Holiday and its affiliates can license, franchise, own, operate, and/or manage lodging facilities and related activities under the names and marks associated with the Brand System or any other names and marks. There are no limitations on Holiday using any distribution channel to solicit customers for its and its affiliates' hotels, whether operating under the marks licensed to the franchisee or other marks. Holiday and its affiliates are also not restricted from establishing other licenses, company-owned outlets, or other distribution channels through which services or licenses under different trademarks might be offered.
This means that as an Atwell Suites franchisee, you may face competition from other hotels operating under the IHG Portfolio Brands (which includes Atwell Suites and other brands) in or near your area. These other hotels can solicit reservations from customers in your area, and you will not receive any compensation for those reservations. The License agreement does not grant franchisees any rights in these other hotel brands or businesses at any other location, nor does it provide any options, rights of first refusal, or other rights to acquire additional licenses.