Is Holiday obligated to make a loan to an Atwell Suites franchisee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not make any representations about an Atwell Suites® licensee's future financial performance or the past financial performance of company-owned or licensed outlets. Holiday also does not authorize its employees or representatives to make any such representations either orally or in writing. If you are purchasing an existing outlet from Holiday, however, Holiday may provide you with the actual records of that outlet. If you receive any other financial performance information or projections of your future income, you should report it to Holiday's management by contacting, Holiday Hospitality Franchising, LLC, Attn: Financial Performance Representation Administrator, c/o Vice President, Franchise Operations, Suite 100, Three Ravinia Drive, Atlanta, Georgia 30346 (404) 770- 2000, the Federal Trade Commission, and the appropriate state regulatory agencies.
Source: Item 10 — FINANCING (FDD page 75)
What This Means (2025 FDD)
According to the 2025 FDD, there is no mention of Holiday, the franchisor of Atwell Suites, being obligated to provide loans or financing to franchisees. The document outlines various aspects of the franchise relationship, including assistance provided by Holiday, brand standards, specifications, and financial performance representations. However, it does not include any commitment from Holiday to offer financial assistance in the form of loans.
Item 11 details the assistance Holiday provides to franchisees, such as maintaining brand standards, providing training programs, and offering access to reservation services. It also discusses marketing and advertising support. However, this section does not mention any financial obligations on Holiday's part to provide loans to franchisees. The absence of such a provision suggests that franchisees are responsible for securing their own financing to establish and operate an Atwell Suites hotel.
Item 19 explicitly states that Holiday does not make any representations about a licensee's future financial performance and does not authorize employees or representatives to make such representations. This further reinforces the idea that franchisees are responsible for their own financial planning and securing necessary funding. Prospective franchisees should not rely on any implied promise of financial assistance from Holiday and should instead focus on their own financial resources and capabilities.