What happens if the agreement between the Atwell Suites franchisee and the management company conflicts with the License?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday requires that any management agreement between you and a management company be in writing, and that the agreement contain certain provisions, including without limitation the following: the management company agrees to abide by all rules, regulations, inspections and requirements of Holiday; you and the management company must cease operating the Hotel as a Brand System Hotel if the License terminates; you and the management company must agree that the License prevails over the terms of the management agreement if there is any conflict in terms; you and the management company agree that Holiday's consent to the management agreement or approval of the management company does not relieve you or any guarantor of any obligations under the License; and, you and the management company will keep the confidentiality of trade secrets described in Item 14, and follow the covenants not to compete described in Item 17. Holiday may request at any time a copy of your management agreement for review to determine compliance with requirements of the License.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 90–92)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, if there is any conflict between the management agreement between the franchisee and the management company and the License agreement with Holiday (the franchisor), the terms of the License will prevail. This means that Atwell Suites franchisees must ensure that their management agreements are aligned with the License agreement, and any conflicting terms in the management agreement will be superseded by the License.
Atwell Suites requires that any management agreement between the franchisee and a management company be in writing and contain specific provisions. These provisions include the management company's agreement to abide by all rules, regulations, inspections, and requirements of Holiday. Additionally, both the franchisee and the management company must cease operating the Hotel as a Brand System Hotel if the License terminates. The agreement must also state that Holiday's consent to the management agreement or approval of the management company does not relieve the franchisee or any guarantor of their obligations under the License. Finally, the franchisee and the management company must agree to keep the confidentiality of trade secrets and follow the covenants not to compete.
This requirement protects Atwell Suites's interests and ensures that all franchisees and their management companies adhere to the brand's standards and requirements. It also clarifies that the franchisee remains responsible for the hotel's operation, even when a management company is involved. Holiday may request a copy of the management agreement at any time to review compliance with the License requirements. This ensures that Atwell Suites maintains control over brand standards and operational procedures, even when a third-party management company is involved.