Does an Atwell Suites franchisee receive interest on funds held in the Reserve Account?

According to Atwell Suites' 2025 Franchise Disclosure Document, franchisees are generally not entitled to interest on funds held in the Reserve Account. Specifically, unless required by law, the franchisee will not receive interest on any funds held by Atwell Suites in the Reserve Account.

The Reserve Account is established to cover potential fees, chargebacks, and other amounts owed by the franchisee under the franchise agreement. These funds are held by Atwell Suites in master accounts, with the franchisee's funds allocated to separate sub-accounts. The funds are held for a period of ten months after the termination of the agreement, or longer if required to cover liabilities related to card transactions and chargebacks.

This policy means that franchisees should not expect to earn any interest income on the funds held in the Reserve Account. The primary purpose of the account is to provide security for Atwell Suites against potential financial risks associated with the franchise operation, rather than to benefit the franchisee through interest accrual. Franchisees should factor this into their financial planning, as the funds in the reserve account will not generate any return during the period they are held by Atwell Suites.