Does the Atwell Suites dispensing equipment lease survive the termination of other agreements?

According to Atwell Suites' 2025 Franchise Disclosure Document, the dispensing equipment lease agreement remains in effect even after the termination or expiration of any agreement into which it is incorporated. Specifically, the terms of the lease will continue to apply until the equipment is removed from the franchisee's premises.

If the lease is terminated before 100 months from the commencement date due to reasons other than Atwell Suites removing the equipment without cause, the franchisee is responsible for covering the actual costs of removal and remanufacturing. These costs include standard shipping and handling charges, as well as the unamortized portion of the costs associated with the equipment's installation, non-serialized parts (such as pumps, racks, and regulators), and other ancillary equipment. These costs are collectively referred to as "unbundling costs."

This provision ensures that Atwell Suites is protected against losses incurred from early termination of the lease, while also clarifying the franchisee's responsibilities regarding the equipment. Prospective franchisees should carefully consider these financial implications and factor them into their business planning. It is also important to note that the franchisee is responsible for all risk of loss, including damage, theft, or destruction to the equipment.