For Atwell Suites hotels, when must the technology equipment costs be paid?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
r Opera Xpress PMS software that your Hotel will utilize (see Items 1, 5, 6, 7, 8, and 11).
All Hotels will require a custom quote at the time the deployment process begins to better determine estimated costs. You must pay these costs before any goods or services are delivered to the Hotel. These cost estimates include: the basic hardware for the PMS and access to the Reservation System, the basic software, the installation of equipment and software and initial training for your employees on how to use the PMS (including the Cloud PMS) with the Reservation System, and the purchase, installation of and training for the NGP equipment and software.
Source: Item 5 — INITIAL FEES (FDD pages 27–30)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, you must pay the costs for technology equipment before any goods or services are delivered to the hotel. This includes the basic hardware and software for the PMS (Property Management System) and access to the Reservation System, installation of the equipment and software, initial employee training, and the purchase, installation, and training for the NGP equipment and software.
The FDD specifies that all initial fees, unless otherwise noted, are payable in full prior to the hotel opening. These fees are considered fully earned when paid and are generally non-refundable. This payment schedule is fairly standard in the franchise industry, as it allows Atwell Suites to cover its upfront costs associated with setting up a new franchise location.
It is important to note that the costs for Cloud PMS, which Atwell Suites currently designates for all its branded hotels, consist of a PMS Solution Fee paid throughout the license term and an Implementation Fee paid during the initial 48 months of hotel operation. These fees are paid directly to SCH (presumably the parent company or a designated technology vendor). While the initial hardware/software costs must be paid upfront, the Cloud PMS fees are structured as ongoing monthly payments. Franchisees should budget accordingly for both the initial investment and the recurring monthly expenses.