What were the current receipts for Atwell Suites?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event IHG terminates this License due to Licensee's breach of any of its obligations under the License prior to the time that Licensee is authorized to use the Brand System at the Hotel, Licensee
shall pay to IHG, as liquidated damages, a lump sum equal to the monthly average of all amounts that would have been payable to IHG under paragraphs 3.B.(3) through 3.B.(6) of this License assuming the Hotel had collected Gross Suites Revenue based on the average daily revenue per available room for all "mature hotels" in the Brand System or operating under one of IHG's "All Suite brands" (as hereinafter defined) in the United States for the previous twelve (12) months, as determined by IHG, multiplied by the greater of (a) six (6) or (b) the number of full and partial months from the Effective Date to the termination date of this License. For purposes of this paragraph, "mature hotels" means hotels which were open for two full years or longer; were franchised or, alternatively, owned and/or managed by IHG or one of its Affiliates; and, were not in default of their applicable franchise or management agreement obligations as of the applicable date. For purposes of this paragraph, IHG's "All Suite brands" means Staybridge Suites, Candlewood Suites or Atwell Suites.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
The 2025 Atwell Suites Franchise Disclosure Document (FDD) does not contain specific information regarding the current receipts or revenue figures for Atwell Suites hotels. The FDD includes several amendments to the franchise agreement related to specific state laws and modifications to certain clauses, but none of these sections provide concrete data on current receipts.
However, the FDD does mention how revenue is used in the context of calculating fees and potential liquidated damages. Specifically, it references "Gross Suites Revenue" and "average daily revenue per available room" as metrics used to determine payments to IHG in certain situations, such as early termination of the license agreement. It also mentions that IHG Rewards Club Marketing Contributions are equal to a percentage of Qualifying Full Folio Revenue and Qualifying Room and Meeting Revenue from IHG Rewards Club members.
Prospective franchisees should directly ask Atwell Suites for detailed financial performance representations, including average or median revenue figures for existing hotels, to fully understand the potential financial performance of an Atwell Suites franchise. This information is crucial for making an informed investment decision.