What happens if a principal of an Atwell Suites franchise is convicted of a felony?

According to the 2025 Atwell Suites Franchise Disclosure Document, Item 23 states that no principal has been convicted of a felony or pleaded nolo contendere to a felony charge. This applies if the conviction or plea occurred within the ten years immediately preceding the application for registration. This also extends to misdemeanors or material complaints alleging violations of franchise, antifraud, or securities laws; fraud, embezzlement, fraudulent conversion or misappropriation of property; or unfair or deceptive practices.

This means that Atwell Suites conducts background checks on its franchisees and their principals. A felony conviction (or a similar misdemeanor or legal proceeding) within the past 10 years could disqualify someone from becoming a franchisee. The franchisor wants to ensure that its franchisees have a clean record and are not likely to engage in unethical or illegal behavior that could harm the brand.

This requirement is fairly standard in the franchise industry, as franchisors need to protect their brand reputation and maintain trust with customers. Prospective Atwell Suites franchisees should be aware of this requirement and ensure that they and their principals meet these standards before applying for a franchise.