What must an Atwell Suites franchisee disclose regarding changes to their business?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Hotel comprises all structures, facilities, appurtenances, furniture, fixtures, equipment, entry and exit rights, parking, pools, landscaping and other areas from time to time located on the land identified by Licensee to IHG in anticipation of this License, or located on any land from time to time approved by IHG for additions, signs or other facilities. The Hotel must include the facilities listed on Attachment "A" hereto. No change in the number of approved guest rooms or suites and no other significant change in the Hotel or in the manner in which the Hotel rooms and services are offered to the public (including timesharing and condominium hotel projects and other projects not involving short term stays by transient guests) may be made without IHG's written approval. Licensee represents that it is entitled to possession of the Hotel during the entire License Term without restrictions that would interfere with anything contemplated in this License. Throughout this License, the words "room" and "guest room" are intended to include the word "suites" unless otherwise indicated.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, an Atwell Suites franchisee must obtain written approval from IHG (InterContinental Hotels Group) before making significant changes to the hotel. These changes include altering the number of approved guest rooms or suites, or any other significant change in the hotel or the manner in which the hotel rooms and services are offered to the public. This includes ventures such as timesharing and condominium hotel projects that do not involve short-term stays by transient guests.
This requirement ensures that the Atwell Suites brand maintains consistency and quality across all locations. By mandating franchisor approval for significant changes, IHG can control the brand's image and service standards, protecting the overall network from potentially detrimental alterations. This also allows IHG to assess whether proposed changes align with the brand's strategic direction and market positioning.
For a prospective Atwell Suites franchisee, this means that any plans to modify the hotel's structure, services, or business model must be communicated to and approved by IHG. Failure to obtain this approval could result in a breach of the license agreement, potentially leading to penalties or termination of the franchise. Therefore, franchisees need to factor in the time and process required for obtaining IHG's approval when considering any changes to their Atwell Suites hotel.
This level of franchisor oversight is common in the hotel franchising industry, where maintaining brand standards is critical for attracting and retaining customers. Franchisees benefit from the brand's reputation and marketing efforts, but in return, they must adhere to the franchisor's guidelines and seek approval for significant changes to ensure brand uniformity and quality.