What must an Atwell Suites franchisee do regarding transactions that are charged back?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Chargebacks Generally. You must reimburse us for all transactions you submit that are charged back and all related amounts, including: (a) all Chargebacks; (b) all fees, fines, penalties, assessments, and other amounts related to disputing or arbitrating a Chargeback or failing to produce records within applicable time limits; and (c) all Chargeback Fees set forth on the Fee Schedule or elsewhere in the Agreement, regardless of whether a Chargeback is settled in your favor or the Cardholder's favor.
- 7.2 Disputing Chargebacks. You may dispute a Chargeback as provided in the Card Organization Rules, including any requirements for timely submission.
Our obligation to you respecting Chargeback disputes is limited to presenting your dispute to the appropriate Card Organization, to the limited extent required by Card Organization Rules.
We will not engage in direct collection efforts against Cardholders on your behalf.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, franchisees are responsible for chargebacks. Specifically, the franchisee must reimburse Atwell Suites for all transactions that are charged back. This reimbursement includes the amount of the chargeback itself, along with any related fees, fines, penalties, assessments, and other amounts associated with disputing or arbitrating the chargeback. This also includes any chargeback fees outlined in the fee schedule, regardless of whether the chargeback is ultimately settled in the franchisee's favor or the cardholder's favor.
However, the Atwell Suites franchisee has the option to dispute a chargeback, as provided in the Card Organization Rules, including meeting any requirements for timely submission. Atwell Suites' obligation regarding chargeback disputes is limited to presenting the franchisee's dispute to the appropriate Card Organization, to the extent required by Card Organization Rules. Atwell Suites will not engage in direct collection efforts against cardholders on the franchisee's behalf.
This means that if a customer successfully disputes a charge, the Atwell Suites franchisee is initially liable for the disputed amount and any associated costs. While the franchisee can challenge the chargeback, the ultimate decision rests with the card issuer or the Card Organization. Even if the franchisee provided the goods or services and is legally entitled to payment, a chargeback can still occur, and neither Atwell Suites nor the card issuer is responsible for such transactions. The franchisee may need to pursue claims directly against the customer in such cases. Therefore, it is crucial for franchisees to understand and comply with all Card Organization Rules to minimize chargebacks and maximize their chances of successfully disputing them.