Is an Atwell Suites franchisee entitled to interest on funds held in the Reserve Account?

According to the 2025 Atwell Suites FDD, franchisees are generally not entitled to interest on funds held in the Reserve Account. Specifically, unless required by law, the FDD states that the franchisee will not receive interest on any funds held by the franchisor in a Reserve Account.

The Reserve Account is established to cover potential fees, chargebacks, and other amounts owed by the franchisee under the franchise agreement. The franchisor has the authority to set and adjust the amount of the Reserve Account based on the franchisee's processing history and potential risk of loss to the franchisor.

This policy is fairly standard in franchising, as the franchisor manages the account and bears the administrative burden. The funds in the Reserve Account may be commingled with other funds of the franchisor or other customers. Franchisees should be aware of this policy and factor it into their financial planning, as the funds held in reserve will not generate any interest income for them unless a specific law mandates it.