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What is the financial threshold for the Learning & Development allocation cap for Atwell Suites?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

Where the amount of the value-add and specialist training exceeds 2% of your Hotel's total salaries and wages budget, the Learning & Development allocation should be capped at 2% of the Hotel's total salaries and wages budget. This estimated budget amount is required for the consumption of IHG Value-Add and Specialist learning offers and the personal development of Hotel employees through other various training programs, which also includes virtual and e-learning.

Source: Item 6 — OTHER FEES (FDD pages 30–56)

What This Means (2025 FDD)

According to Atwell Suites's 2025 Franchise Disclosure Document, the Learning & Development allocation is capped if the value-add and specialist training exceeds a certain percentage of the hotel's total salaries and wages budget. Specifically, if the cost of this training goes above 2% of the hotel's total salaries and wages budget, then the Learning & Development allocation is capped at that 2% level. This budget is intended to cover IHG Value-Add and Specialist learning offers, as well as the personal development of hotel employees through various training programs, including virtual and e-learning options.

For a prospective Atwell Suites franchisee, this means carefully managing the training budget to stay within the 2% threshold of total salaries and wages. Exceeding this limit will result in the Learning & Development allocation being capped, potentially affecting the scope and quality of training programs available to hotel staff. Franchisees should therefore prioritize cost-effective training solutions and closely monitor their spending in this area.

This policy ensures that training expenses remain aligned with the overall financial health of the hotel. By capping the allocation, Atwell Suites aims to balance the need for employee development with the importance of maintaining profitability. Franchisees need to be aware of this limitation and plan their training programs accordingly to maximize the value received within the allocated budget.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.