Can an Atwell Suites hotel assign or transfer the Atwell Suites Agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Client shall not assign or otherwise transfer this Agreement or any of its interest in this Agreement without the prior written consent of SCH. Except for the prohibition on assignment contained in the preceding sentence, this Agreement shall be binding upon and inure to the benefits of the heirs, successors and assigns of the parties hereto.
Hotel Owner shall not assign or otherwise transfer this Agreement or any of its interest in this Agreement without the prior written consent of SCH, which consent shall not be unreasonably withheld or delayed. The Parties agree that it shall be reasonable for SCH to withhold consent to any such requested assignment or transfer if, among other reasons, the proposed assignee or transferee is not of good business reputation, is not financially sound or is a competitor of SCH. Notwithstanding the foregoing, Hotel Owner may, without SCH's consent, assign this Agreement to an entity which is controlled by, in control of or under common control with Hotel Owner, provided that Hotel Owner gives SCH written notice of such assignment within thirty (30) days following the effective date hereto.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the client, referring to the franchisee, is restricted from assigning or transferring the agreement or any interest in the agreement without obtaining prior written consent from SCH (Six Continents Hotels, Inc.).
However, the agreement is binding upon and extends to the benefit of the heirs, successors, and assigns of all parties involved, except for the specific prohibition on assignment without consent. This means that while the franchisee cannot freely transfer the agreement to another party, the agreement remains in effect for the benefit of all involved parties.
An exception exists where the Hotel Owner can assign the agreement without SCH's consent to an entity controlled by, in control of, or under common control with the Hotel Owner, provided that SCH receives written notice of such assignment within thirty days following its effective date. However, SCH's consent to assignment shall not be unreasonably withheld or delayed. It is deemed reasonable for SCH to withhold consent if the proposed assignee or transferee lacks a good business reputation, is not financially sound, or is a competitor of SCH.
This provision ensures that Atwell Suites maintains control over who operates its franchised locations, safeguarding brand standards and reputation, while also allowing for some flexibility in cases of internal restructuring or succession, subject to notification and reasonable consent conditions.