What are the Atwell Suites hotel's obligations regarding the maintenance and use of the IHG-approved equipment purchased for use with the Secure Payment Solution?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall (a) ensure that the Equipment is kept in good and proper working condition, normal wear and tear excepted, (b) not make any alterations or improvements to the Equipment without the prior written approval of the manufacturer, and (c) operate and maintain the Equipment in accordance with the user manuals and documentation, and any instructions issued by the manufacturer from time to time.
- 1.2.
Equipment Location.
Hotel shall not locate or relocate any Equipment without IHG's prior written consent.
IHG's consent may be conditioned upon Hotel's execution of a waiver agreement pursuant to which, among other things, the entity controlling the new location shall have waived any rights to the Equipment and agreed to surrender the Equipment to IHG or HPFS upon an event of default.
Hotel shall confirm the Equipment location in writing to IHG upon IHG's request.
- 1.4.
Risk of Loss; Insurance.
Hotel assumes any and all risk of loss or damage to the Equipment until such Equipment is returned to and received by HPFS or IHG in accordance with the terms and conditions of this Agreement or the IHG-HPFS agreement.
Hotel agrees to keep the Equipment insured at the expense of Hotel against all risks of loss from any cause whatsoever, including without limitation, loss by fire (including extended coverage), theft and damage, and such insurance shall cover not less than the replacement value of the Equipment.
Hotel shall name HPFS as a loss payee and an additional insured, as applicable, under such insurance policies.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, Atwell Suites franchisees are obligated to maintain and use IHG-approved equipment purchased for the Secure Payment Solution according to specific guidelines. The franchisee must ensure the equipment is kept in good working condition, with allowances for normal wear and tear. Alterations or improvements to the equipment are prohibited without the manufacturer's prior written approval. Furthermore, the equipment must be operated and maintained in accordance with the user manuals, documentation, and any instructions provided by the manufacturer.
These stipulations ensure that the Secure Payment Solution operates effectively and consistently across all Atwell Suites locations, maintaining brand standards and security protocols. By adhering to these maintenance and usage guidelines, franchisees help minimize disruptions and ensure the longevity of the equipment. This also helps in maintaining compliance with IHG's technology and security requirements.
Additionally, the franchisee cannot locate or relocate any equipment without first obtaining written consent from IHG. IHG may require a waiver agreement from the entity controlling the new location, ensuring they relinquish rights to the equipment and agree to surrender it to IHG or HPFS (Hewlett-Packard Financial Services Company) upon an event of default. The franchisee must also confirm the equipment location in writing upon IHG's request. These location-related rules allow IHG to keep track of its assets and maintain control over the Secure Payment Solution's deployment.
The Atwell Suites franchisee also bears the risk of loss or damage to the equipment until it is returned to HPFS or IHG, and must insure the equipment against all risks of loss, including fire, theft, and damage, for not less than the replacement value. HPFS must be named as a loss payee and an additional insured under these insurance policies. These financial protections ensure that any loss or damage to the equipment is covered, mitigating potential financial burdens on both the franchisee and IHG.