factual

Must an Atwell Suites franchisee receive approval from the franchisor before using a Merchant Provider?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

4.6 Merchant Providers.

  • (a) Data Security Requirements Apply to Merchant Providers. The data security standards set forth in this Section 4 also apply to Merchant Providers.

Before you engage any Merchant Provider, you must provide to us in writing the Merchant Provider's legal name, contact information, and intended function.

You acknowledge and agree that you will not use, or provide Cardholder data access to, any Merchant Provider until you receive our approval (which approval shall not be unreasonably withheld) and, if required, confirmation of our registration of that Merchant Provider with applicable Card Organizations.

  • (b) Merchant Provider Compliance. You must ensure that you and Merchant Providers: (i) comply with the registration process which can involve site inspections, background investigations, provision of financial statements, and any other information required by us or a Card Organization; (ii) comply with the periodic and other reporting required by a Card Organization; and (iii) comply with all applicable Card Organization Rules, including without limitation, those requiring security of Cardholder data.

You may allow Merchant Providers access to Cardholder data only for purposes authorized under and in conformance with the Card Organization Rules.

You are responsible for all our costs and expenses associated with our review, approval, certification (and recertification as may be required by us or the Card Organization Rules) and registration of any Merchant Providers.

Source: Item 23 — Receipts (FDD pages 99–486)

What This Means (2025 FDD)

According to the 2025 Atwell Suites Franchise Disclosure Document, franchisees must obtain approval before engaging a Merchant Provider. Prior to engaging a Merchant Provider, the franchisee must provide the Merchant Provider's legal name, contact information, and intended function in writing to Atwell Suites.

The FDD states that franchisees cannot use or provide cardholder data access to any Merchant Provider until they receive approval from Atwell Suites. This approval will not be unreasonably withheld. If required, Atwell Suites will confirm the registration of that Merchant Provider with applicable Card Organizations.

The Atwell Suites franchisee is responsible for all costs and expenses associated with the review, approval, certification, and registration of any Merchant Providers. These costs can include those required by Atwell Suites or Card Organizations.

This requirement ensures that all Merchant Providers meet the data security standards set by Atwell Suites and Card Organizations, reducing the risk of data breaches and fraudulent activities. It also ensures compliance with the registration process, which may include site inspections, background investigations, and the provision of financial statements.

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.