What is the deadline for an Atwell Suites licensee to provide IHG written notice of any judicial or administrative investigation or proceeding that could be the basis for a claim for indemnification?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee agrees to give IHG written notice of any such judicial or administrative investigation or proceeding or any other event that could be the basis for a claim for indemnification by any Indemnitee within three days of Licensee's knowledge of it.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, a licensee must provide IHG (InterContinental Hotels Group) with written notice of any judicial or administrative investigation or proceeding that could lead to an indemnification claim within three days of the licensee gaining knowledge of it. This requirement is part of the broader indemnification agreement where the licensee agrees to protect IHG and its affiliates from any claims, demands, or legal actions arising from the operation of the Atwell Suites hotel.
This quick notification timeframe is crucial because it allows IHG to promptly assess the situation and take necessary actions to protect its interests. IHG has the right to control any matter that could directly or indirectly affect the company. This includes the ability to choose legal counsel and manage the defense of any claim.
Failing to provide notice within the specified three-day period could potentially jeopardize the licensee's indemnification coverage, making it essential for franchisees to have systems in place to quickly identify and report any relevant investigations or proceedings. This requirement aligns with standard franchise practices, where franchisors seek to protect their brand and reputation through indemnification clauses and timely reporting.