What is the dependency between the License Agreement and the required hotel services for an Atwell Suites franchise?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
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Holiday offers and grants licenses under the terms of a license agreement (the "License") to establish and operate, at a single, defined location, a distinctive, high quality hotel (the "Hotel") under the service mark Atwell Suites® .
The Hotel you operate will be part of a unique system which is appropriate for your Hotel brand (the "Brand System"). The Brand System is designed to provide high quality hotel service to the public under a distinctive business format, and includes, among other things, those service marks and copyrights, trademarks and similar intellectual property rights that Holiday designates; rights to domain names and other identifications or elements used in electronic commerce made available to licensees of the Brand System by the License; access to a reservation system, including technology systems, loyalty programs, sales and catering system and other related systems; access through Holiday to multiple call centers and central reservations offices around the world handling reservations and operated in accordance with specifications that Holiday establishes from time to time; access through Holiday to brand marketing services and distribution marketing services including global advertising and publicity and other marketing programs and materials; architectural drawings and architectural works, training programs and materials; confidential or proprietary information, standards, specifications and policies for construction, furnishing, operation, appearance, and guest service; programs for inspecting the Hotels, measuring and assessing service, quality and consumer opinion and consulting with you; and other requirements referred to in the License, or in Holiday's brand standards for Atwell Suites® (collectively, the "Standards"), and in other communications. Holiday may add elements to the Brand System or modify or delete elements of the Brand System.
If your Hotel is a conversion, change of ownership or re-licensing, the License may include obligations for the performance of construction and renovation work specific to the property being licensed, which will be detailed in Attachment "B" to the License. You should review these obligations before signing any License.
The License you sign will specify the type of arrangement applicable to your situation, whether it involves new development, conversion, change of ownership, or re-licensing. New Development shall mean the construction of a new building to operate a Hotel in the Brand System. Conversion shall mean renovating an existing building to meet our Standards, allowing it to function as a Hotel in the Brand System. Change of Ownership shall mean the transfer of ownership or control of the Hotel to a new owner. Re-Licensing shall mean granting a new License, at Holiday's discretion, after the expiration of a previous License for the same Hotel. Adaptive Reuse shall mean a specific type of conversion that involves repurposing an existing structure for use as a Hotel in the Brand System.
Atwell Suites® Hotels:
Atwell Suites® is built for the 'opportunity seeker' - guests typically looking for a hotel that allows them to work, rest and socialize in an environment that flexes to their needs and provides opportunities for personal growth. Typical features of an Atwell Suites® Hotel will include studio suites with a wet bar (sink, microwave and fridge), plus a lobby with flexible public and private meeting spaces. The Hotel will offer a complimentary hot breakfast and a paid evening bar with a focused menu.
HOLIDAY'S PARENT, PREDECESSOR IN INTEREST AND AFFILIATES:
Holiday's ultimate corporate parent is InterContinental Hotels Group PLC.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 92)
What This Means (2025 FDD)
According to the 2025 FDD, the Atwell Suites License Agreement grants the franchisee the right to operate a hotel under the Atwell Suites service mark at a specific location. This license is contingent upon adhering to the Brand System, which mandates providing high-quality hotel service. The Brand System encompasses various elements, including intellectual property, access to reservation systems, marketing services, architectural guidelines, training programs, and operational standards. Holiday, the licensor, retains the right to modify or add to these elements. Therefore, the License Agreement is the foundational document that legally binds the franchisee to provide hotel services in accordance with Atwell Suites' established standards and systems.
The License Agreement also stipulates the technology systems franchisees must use. Specifically, each Atwell Suites hotel is required to obtain and install an approved Property Management System (PMS). As of the date of the 2025 disclosure document, the only approved PMS is the cloud-based PMS solution provided by HotelKey. Franchisees must enter into the Next-Gen PMS Agreement to operate on this system. Additionally, a front office protection service (FastConnect SD-WAN, provided by AT&T) is required as part of the PMS deployment. The Master Technology Services Schedule (MTSS), included as Attachment "D" of the License, governs access to the Reservation System.
Several state-specific amendments to the standard License Agreement exist, modifying certain provisions to comply with local laws. For example, amendments for California, Minnesota, Rhode Island, Illinois, and New York address issues such as termination rights, non-renewal rights, liquidated damages, governing law, and liability. These amendments highlight that the License Agreement is not a static document and can be subject to legal adjustments depending on the location of the franchise. Therefore, prospective franchisees should carefully review any state-specific amendments applicable to their location to fully understand their rights and obligations under the License Agreement.