Can GIAC furnish guaranties to Atwell Suites licensees?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Guarantor(s) will provide the Guaranty.
- D. In granting this non-exclusive license, IHG has relied upon the business skill, financial capacity, and character of Licensee and the Guaranty to be provided by the Guarantor(s).
Source: Item 10 — FINANCING (FDD page 75)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, a guarantor may be required to provide a guaranty. Specifically, IHG (the parent company) may require a guaranty from a guarantor, relying on this guaranty along with the business skill, financial capacity, and character of the licensee when granting the license to operate an Atwell Suites hotel.
The standard license agreement includes recitals that address the role of guarantors. The FDD states, "Guarantor(s) will provide the Guaranty" and that IHG relies on this guaranty. This indicates that a separate individual or entity (the guarantor) assures the franchisee's obligations to Atwell Suites.
Prospective franchisees should carefully review the guaranty requirements with their legal and financial advisors to fully understand the obligations and potential liabilities associated with providing a guaranty for an Atwell Suites franchise.