For Atwell Suites hotels, what is required regarding alterations or improvements to the Equipment?
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.
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.
Hotel covenants that it will not pledge or encumber any of the Equipment or the interest of HPFS in the Equipment in any manner whatsoever nor create or permit to exist any levy, lien or encumbrance thereof or thereon except those created by or through HPFS.
The Equipment shall remain the personal property of HPFS (during the initial 48-month Term) whether or not affixed to realty and shall not become a fixture or be made to become a part of any real property on which it is placed without the prior written consent of HPFS.
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 Atwell Suites' 2025 Franchise Disclosure Document, franchisees are responsible for maintaining the equipment in good working condition, with allowances for normal wear and tear. However, franchisees are explicitly prohibited from making any alterations or improvements to the equipment without first obtaining written approval from the manufacturer. Furthermore, the franchisee must operate and maintain the equipment according to the user manuals, documentation, and any instructions provided by the manufacturer. This ensures that the equipment functions correctly and safely, and that any changes align with the manufacturer's specifications.
In addition to restrictions on alterations, the FDD states that franchisees cannot locate or relocate any equipment without prior written consent from IHG (InterContinental Hotels Group). IHG's consent may depend on the franchisee signing a waiver agreement, ensuring that the new location's controller waives any rights to the equipment and agrees to surrender it to IHG or HPFS (presumably a financing entity) upon an event of default. The franchisee must also confirm the equipment's location in writing to IHG upon request. These location restrictions allow IHG to maintain control over the hotel's layout and ensure operational standards are met.
The Atwell Suites franchisee is also prohibited from pledging or encumbering the equipment in any way, or allowing any liens or encumbrances on it, except those created by HPFS. The equipment remains the personal property of HPFS during the initial 48-month term, regardless of whether it is attached to the real property, unless HPFS provides prior written consent. This protects HPFS's financial interest in the equipment and prevents franchisees from using it as collateral without permission.
Finally, the franchisee bears the risk of loss or damage to the equipment until it is returned to HPFS or IHG, and must maintain insurance covering all risks of loss, including fire, theft, and damage, for not less than the equipment's replacement value. HPFS must be named as a loss payee and an additional insured under these policies. This ensures that the equipment is protected against potential losses and that HPFS's investment is secured.