What costs are explicitly excluded from being covered by the Services Contribution for an Atwell Suites franchise?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Service Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of the Hotel. The Services Contribution does not include costs that Licensee incurs in the acquisition, installation or maintenance of reservations services, equipment or training, or in Licensee's own marketing activities. IHG and its Affiliates are not responsible for any of these costs.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, the Services Contribution paid by Atwell Suites franchisees cannot be used to cover certain costs related to the hotel's upkeep and operations. Specifically, the Services Contribution will not cover the cost of maintenance, repair, modernization, renovation, or upgrading of the hotel property.
Additionally, the Services Contribution does not cover expenses that the franchisee incurs in the acquisition, installation, or maintenance of reservation services, equipment, or training. It also excludes costs related to the franchisee's own marketing activities. IHG and its affiliates are not responsible for covering any of these costs.
In practical terms, this means that while a portion of the franchisee's fees goes towards strengthening the Atwell Suites brand through advertising, marketing, and other system-wide initiatives, franchisees must budget separately for the physical upkeep of their property, their own marketing efforts, and the technology and training needed for reservation systems.