Does Atwell Suites have employees who provide services to affiliated companies, and if so, who pays their salaries?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG may enter into arrangements for development, reservation services, marketing, operations, administrative, training, technical and support functions, facilities, programs, services and/or personnel with any other entity, and may use any facilities, programs, services or personnel used in connection with the Brand System, in connection with any business activities of its Affiliates.
Licensee must ensure suitable, qualified individuals are employed at the Hotel in such number as is sufficient to staff all positions at the Hotel in accordance with the Standards.
None of Licensee's employees will be considered to be IHG's employees.
Licensee acknowledges and agrees that Licensee, or its management company engaged to operate the Hotel, as may be applicable, is the sole employer of the employees working at the Hotel and that IHG does not directly or indirectly control employment policies, discipline, recruitment or termination and that Licensee is solely responsible for all employment decisions, regardless of whether Licensee has received guidance with respect to such matters from IHG.
Neither Licensee nor any of Licensee's employees whose compensation Licensee pays may in any way, directly or indirectly, expressly or by implication, be construed to be IHG's employee for any purpose, including but not limited to with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency.
IHG will not have the power to hire or fire Licensee's employees.
Licensee expressly agrees, and will never contend otherwise, that IHG's authority under this License to approve certain of Licensee's employees for qualification to perform certain functions for the Hotel does not directly or indirectly vest in IHG the power to hire, fire or control any such employee.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, IHG (the franchisor) may enter into arrangements with other entities for various functions such as development, reservation services, marketing, operations, administrative tasks, training, technical support, and personnel. IHG can also utilize facilities, programs, services, or personnel connected with the Atwell Suites brand for its affiliates' business activities.
However, the FDD also clarifies the relationship between the franchisee (Licensee) and IHG regarding employees at the hotel. The Atwell Suites franchisee is solely responsible for employing suitable and qualified individuals to staff the hotel adequately, according to the brand's standards. The franchisee, or its management company, is considered the sole employer of the hotel's employees. IHG does not directly or indirectly control employment policies, discipline, recruitment, or termination decisions.
Therefore, while IHG may have employees who provide services to affiliated companies, the employees working at the Atwell Suites hotel are the sole responsibility of the franchisee. The franchisee is responsible for all employment decisions and compensation of these employees, and these employees are not considered employees of IHG.