What is the deadline for the Licensee to commence reconstruction of an Atwell Suites hotel after a fire or other casualty?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless this License is terminated properly pursuant to the foregoing provision, Licensee will close the Hotel if required by the extent of the damage or if otherwise required by IHG; will repair or rebuild the Hotel in accordance with IHG's Standards; will commence reconstruction within six months after the fire or other casualty; will expeditiously continue on an uninterrupted basis with such reconstruction; and will, if the Hotel was closed, reopen the Hotel for continuous business operations as soon as practicable (but in any event within twenty-four months after the fire or other casualty), giving IHG at least forty-five days advance notice of the date of reopening if the Hotel was closed. If the Hotel was closed, Licensee may not reopen the Hotel or promote or otherwise hold the Hotel out as a hotel in the Brand System unless and until IHG determines that the reconstruction is completed in accordance with IHG's then current Standards. If the Hotel is not required to be closed, all work to repair damage shall be conducted so as to minimize interference with the Hotel's operation and guests. If the damage is not repaired in accordance with this paragraph, this License will forthwith terminate upon notice thereof by IHG to Licensee and Licensee shall be responsible for full liquidated damages under paragraph 11.E. of this License. Notwithstanding anything else herein to the contrary, during the time the Hotel is closed, Licensee shall pay IHG a monthly royalty of 2% of Gross Suites Revenue based on the average monthly Gross Suites Revenue for the preceding twelve months prior to the date of the fire or other casualty or, if the Hotel has not been in the Brand System for twelve months, based on the average monthly Gross Suites Revenue for the period during which the Hotel has been in operation in the Brand System. Said payment shall be in lieu of all other Brand System fees under paragraph 3.B. of this License.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, if an Atwell Suites hotel is damaged by fire or other casualty, the franchisee must start reconstruction within six months of the event. The franchisee must then continue the reconstruction without interruption and reopen the hotel for continuous business as soon as possible, but no later than 24 months after the casualty. Atwell Suites requires at least 45 days' advance notice of the reopening date if the hotel was closed.
During the period the hotel is closed for reconstruction, the franchisee is obligated to pay Atwell Suites a monthly royalty fee. This royalty is calculated as 2% of the average monthly Gross Suites Revenue from the 12 months preceding the casualty. If the hotel has been operating for less than 12 months, the royalty is based on the average monthly Gross Suites Revenue for the period it has been in operation. This royalty payment substitutes all other Brand System fees typically due under the license agreement.
If the damage is not repaired according to these requirements, Atwell Suites can terminate the license agreement with notice to the franchisee. In such a case, the franchisee would be responsible for liquidated damages as outlined in paragraph 11.E of the license. The FDD also states that if all or virtually all of the hotel is destroyed, either Atwell Suites or the franchisee can terminate the license with 15 days' notice within 60 days of the event, provided the damage was not intentionally caused by the franchisee.