What are some examples of 'Material Changes' that Atwell Suites franchisees must provide written notice of?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
11.2 Material Changes. You will provide us reasonable advance written notice of any material change in the nature of your business ("Material Change"). Material Changes include any change in control or merger; any liquidation; any transfer or sale of substantially all of your assets; and any change that could materially affect the products or services you sell, your procedures for payments acceptance, or your fulfillment of obligations to Cardholders. If a Material Change occurs to which we do not consent in writing, we may suspend the Services, declare an Event of Default, or exercise any of our other rights under the Agreement.
- 11.3 Responsibility for Transactions. You are liable to us for all Chargebacks, Servicers Fees, Third Party Based Fees, and other liabilities arising in connection with: (a) any Card transactions submitted to us for processing by any assignee or transferee of the Agreement (or any part of the Agreement) not previously approved as such by us; and (b) any Card transactions submitted to us following any Material Change not previously approved by us in writing. We may collect amounts owed under this Section 11.3 by setting off or recouping against settlement funds, debiting your Settlement Account, debiting a Reserve Account, or in any other manner we are permitted to collect any other amounts under the Agreement.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, franchisees must provide reasonable advance written notice of any 'Material Change' in the nature of their business. These Material Changes include events such as a change in control or merger affecting the franchise.
Other examples of Material Changes that require written notification include any liquidation of the business or any transfer or sale of substantially all of the franchisee's assets. Additionally, franchisees must report any change that could materially affect the products or services they sell, their procedures for payments acceptance, or their ability to fulfill obligations to cardholders.
Failure to provide written notice and obtain consent for these Material Changes can result in Atwell Suites suspending services, declaring an event of default, or exercising other rights under the agreement. The franchisee may also be liable for chargebacks, service fees, and other liabilities arising from transactions submitted without prior approval of the Material Change.