For Atwell Suites, what factors can cause building construction costs to vary?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
to enter into two separate brand license agreements with Holiday. The fees set forth above may differ based on the nature and structure of such dual-brand arrangement on the Site.
- Note 4: Building construction costs vary greatly from state to state and region to region depending upon material, labor costs, and other variables. Construction costs may also vary depending upon soil and environmental conditions, availability of utilities to the site, and the topography of the site. The
estimate does not take into account special local requirements such as earthquake requirements or impact fees, or specific local aesthetic requirements or remedial work that may be required to bring a building into regulatory compliance or within the Standards. You must use the prototype design plans and mandated Standard Room Décor Program ("SRD Program") supplied by Holiday. An architect approved by Holiday must adapt these plans for a specific site and construction type. You must commission and pay your architect directly. Before commencing your architectural plans and specifications, you must attend a kick-off meeting for consultation and coordination with Holiday. Your plans and specifications must conform to the Standards and must be approved by Holiday before you begin construction. You must provide Holiday with periodic milestone updates of your development progress as required by Holiday. Utilizing custom products or non-contracted vendors is a breach of the License. At Holiday's discretion, Holiday may allow a Custom Design Review for a fee of $35,000.
Source: Item 7 — Estimated Initial Investment (FDD pages 56–65)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, building construction costs can vary significantly based on several factors. These include the state and region where the hotel is being built due to differences in material and labor costs. Additionally, construction costs are affected by soil and environmental conditions, the availability of utilities to the site, and the topography of the site.
The FDD also notes that special local requirements, such as earthquake requirements, impact fees, specific local aesthetic requirements, or any remedial work needed to bring a building into regulatory compliance or within Atwell Suites' standards, can influence construction costs. Franchisees must use the prototype design plans and mandated Standard Room Décor Program provided by Atwell Suites, and an approved architect must adapt these plans for the specific site and construction type.
These factors highlight the importance of conducting thorough due diligence and understanding local market conditions before beginning construction. Prospective Atwell Suites franchisees should carefully evaluate these variables to develop a realistic budget for their initial investment. Consulting with experienced construction professionals and local authorities is essential to account for these potential cost variations and ensure compliance with all applicable regulations and standards.