Does Atwell Suites guarantee a fixed price for Company Smoothies purchased by each Hotel during the Term?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Company agrees that during the Term, each Hotel will have the right to purchase Company Smoothies from Company at Company's then-current published chain account prices, which prices are subject to change from time to time.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, the price of Company Smoothies is not fixed. During the term of the agreement, each Atwell Suites hotel has the right to purchase Company Smoothies from the Company at the then-current published chain account prices. These prices are subject to change from time to time.
This means that the cost of smoothies for Atwell Suites franchisees can fluctuate, impacting profitability. Franchisees need to factor in potential price increases when budgeting and setting retail prices. It is a common practice in franchising for suppliers to adjust prices based on market conditions, so this is not unusual.
Prospective franchisees should inquire about the historical price volatility of Company Smoothies and discuss strategies for managing potential cost increases with Atwell Suites. Understanding how frequently prices have changed in the past and what factors influence these changes can help franchisees better prepare for future fluctuations.