For Atwell Suites, what happens to the lease term if equipment is removed?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment Lessee may request the removal of any Equipment upon thirty (30) days prior written notice to Company, and in addition, Company may remove any piece of Equipment for any reason upon thirty (30) days prior written notice to Customer.
Removal of Equipment will not affect the term of any agreement between the parties.
If this Lease is terminated with respect to any piece of Equipment for any reason, other than Company removing a piece of Equipment without cause under this section, prior to 100 months from the Commencement Date for that piece of Equipment, Equipment Lessee will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation, (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment.
Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs." The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been removed from Equipment Lessee's premises and will survive the expiration or termination of any agreement into which this Lease is incorporated.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the removal of equipment does not affect the term of any agreement between the parties. An Atwell Suites franchisee (Equipment Lessee) may request the removal of any equipment with thirty days prior written notice to the company. The company may also remove any piece of equipment for any reason with thirty days written notice to the customer.
However, if the lease is terminated for any reason other than the company removing the equipment without cause before 100 months from the commencement date, the franchisee will be responsible for the actual cost of removal, including shipping and handling, and remanufacturing of the equipment. The franchisee will also be responsible for the unamortized portion of the costs of installation, non-serialized parts, and other ancillary equipment. These costs are collectively referred to as "unbundling costs."
The terms of the lease will remain in effect until the equipment has been removed from the franchisee's premises and will survive the expiration or termination of any agreement into which the lease is incorporated. This means that even if the franchise agreement ends, the equipment lease remains in effect until the equipment is physically removed and all associated costs are settled.