Does the Atwell Suites franchisee have to pay a fee for IHG to use the Licensee Personal Data?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee hereby grants to IHG and its Affiliates a non-exclusive, worldwide, perpetual and royalty-free license to use (including the right to sublicense) the Licensee Personal Data (except for the Excluded Personal Data) free of charge, for the purposes of IHG's performance of its obligations under this License, including, without limitation, the right to transfer Licensee Personal Data across national borders and to transfer Licensee Personal Data to third parties.
IHG may retain a copy of Licensee Personal Data upon the termination or expiration of this License.
Licensee represents, warrants, and covenants that any Licensee Personal Data transferred to IHG or its Affiliates for the purposes of this License has been collected, retained, used, and transmitted in compliance with applicable Data Privacy Laws.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, franchisees grant IHG and its affiliates a non-exclusive, worldwide, perpetual, and royalty-free license to use Licensee Personal Data. This license includes the right to sublicense the data and transfer it across national borders to third parties, all without any charge to IHG. IHG may also retain a copy of Licensee Personal Data even after the termination or expiration of the license agreement.
This arrangement means that Atwell Suites franchisees do not receive direct compensation for the use of their data. However, the agreement stipulates that any Licensee Personal Data transferred to IHG must be collected, retained, used, and transmitted in compliance with applicable Data Privacy Laws. This places the onus on the franchisee to ensure data handling practices meet legal standards.
For a prospective Atwell Suites franchisee, this clause highlights the importance of understanding data privacy obligations and the extent to which their data contributes to IHG's broader operational and marketing activities. While franchisees benefit from IHG's brand recognition and systems, they also contribute data that IHG can leverage on a global scale. Franchisees should ensure they fully understand their responsibilities regarding data privacy and security to avoid potential legal or financial repercussions.