What happens if the independent certified accountants of an Atwell Suites franchisee refuse to deliver an unqualified opinion with respect to the franchisee's annual financial statements?

According to the 2025 Atwell Suites Franchise Disclosure Document, if a franchisee's independent certified accountants refuse to deliver an unqualified opinion regarding the franchisee's annual financial statements and those of its consolidated subsidiaries, it constitutes a breach of the License Agreement.

This refusal is explicitly listed as a condition that allows IHG to terminate the License Agreement with the Atwell Suites franchisee. An unqualified opinion from certified accountants is a standard requirement to ensure the financial statements are reliable and adhere to accounting principles.

For a prospective Atwell Suites franchisee, this means maintaining sound financial practices and ensuring that their accounting firm can provide an unqualified opinion on their financial statements is critical. Failure to do so could lead to the termination of their franchise agreement, resulting in a loss of their investment and the right to operate under the Atwell Suites brand.