For an Atwell Suites franchise, under what circumstances might additional royalties be charged on revenues from activities added at the Hotel?

According to Atwell Suites' 2025 Franchise Disclosure Document, additional royalties may be charged on revenues from activities added at the Hotel under specific circumstances. If the franchisee and Atwell Suites mutually agree to add an activity at the Hotel that is not generally offered at other Brand System Hotels, or if the activity is designed or developed by or for IHG (InterContinental Hotels Group) or its Affiliates, then additional royalties may be charged.

This provision allows Atwell Suites to capture additional revenue from new or unique offerings at a franchise location. It also incentivizes franchisees to collaborate with the franchisor on innovative activities that could benefit the entire brand. However, it's important for prospective franchisees to understand that any new revenue-generating activities they introduce at their Atwell Suites location could be subject to additional royalty fees.

It is important to note that the Royalty Fee is specifically for granting the franchise and not in exchange for any goods, services, or assistance provided by IHG. This means that the franchisee is paying for the right to operate under the Atwell Suites brand and system, and any additional royalties would be for the specific privilege of offering unique activities or services not typically found at other locations within the franchise system.

Prospective franchisees should carefully consider this provision and discuss with Atwell Suites what types of activities might trigger additional royalties. Understanding the potential costs associated with introducing new revenue streams is crucial for making informed investment decisions and ensuring the long-term profitability of the franchise.