What is the extent of the franchisor's obligation to an Atwell Suites franchisee regarding chargeback disputes?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The "Marks" means the name and mark "Atwell Suites™", IHG One Rewards and IHG Concerto and their distinguishing characteristics and the other service marks, trademarks, trade names, slogans, commercial symbols, logos, trade dress, copyrighted material and intellectual property associated with the Brand System, including, without limitation, those which IHG may designate in the future for use and those which IHG does not designate as withdrawn from use. Licensee shall notify IHG immediately of (i) an infringement, or a challenge to Licensee's use of any of the Marks; (ii) any objections, demands, controversies, allegations or actions asserted or taken by third parties involving any of the Marks or any part of the Brand System of which Licensee becomes aware; and, (iii) any potentially infringing or unauthorized uses of any of the Marks or any part of the Brand System of which Licensee becomes aware. IHG or its Affiliates will have the sole and exclusive right to handle disputes with third parties concerning use of all or any part of the Marks or Brand System, and Licensee will, at its reasonable expense, extend its full cooperation to IHG in all such matters. All recoveries made as a result of disputes with third parties regarding use of the Marks or Brand System or any part thereof shall be for the account of IHG. IHG need not initiate suit against alleged imitators or infringers, and may settle any dispute by grant of a license or otherwise. Licensee will not initiate any suit or proceeding against alleged imitators or infringers, or any other suit or proceeding to enforce or protect the Marks or Brand System.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
The 2025 Atwell Suites Franchise Disclosure Document outlines the franchisor's rights regarding disputes related to the brand's trademarks. Specifically, IHG, the franchisor, has the sole and exclusive right to handle disputes with third parties concerning the use of the "Atwell Suites™" name and mark, as well as other service marks, trademarks, trade names, slogans, commercial symbols, logos, trade dress, copyrighted material, and intellectual property associated with the Brand System.
The Atwell Suites franchisee is obligated to immediately notify IHG of any infringements or challenges to the use of the Marks, any objections, demands, controversies, allegations, or actions asserted by third parties involving the Marks or any part of the Brand System, and any potentially infringing or unauthorized uses of the Marks or any part of the Brand System. The franchisee is required to extend its full cooperation to IHG in handling these matters, and this cooperation is at the franchisee's reasonable expense.
All financial recoveries resulting from disputes with third parties regarding the use of the Marks or Brand System will be for the account of IHG. IHG is not obligated to initiate lawsuits against alleged imitators or infringers and may settle disputes by granting licenses or other means. The franchisee is prohibited from initiating any suit or proceeding against alleged imitators or infringers, or any other suit or proceeding to enforce or protect the Marks or Brand System. This section focuses on trademark disputes and does not discuss chargebacks.