If Atwell Suites assigns or subcontracts the agreement, what is Atwell Suites' obligation regarding notification to the franchisee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Card Organization Rules, we may assign or transfer the Agreement and our rights, duties, and obligations hereunder and/or delegate or subcontract our rights, duties, and obligations hereunder, in whole or in part, to any Third Party, whether in connection with a change in sponsorship, as set forth in the preceding paragraph, or otherwise, without your consent; provided, however that in the event we so assign or subcontract the Agreement, in whole or in part, we agree to provide you written notice of such assignment or subcontract (as applicable) as promptly as practicable following such assignment or subcontracting by us.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, Atwell Suites may assign or transfer the agreement and its rights, duties, and obligations, or delegate or subcontract its rights, duties, and obligations, in whole or in part, to any Third Party without the franchisee's consent. However, Atwell Suites must provide the franchisee with written notice of such assignment or subcontract as promptly as practicable following the action.
This means that Atwell Suites has the right to transfer its responsibilities and rights under the franchise agreement to another party without needing the franchisee's approval. However, Atwell Suites is obligated to inform the franchisee in writing about the assignment or subcontract as soon as possible after it occurs. This notification allows the franchisee to be aware of who they will be dealing with in the future and understand any potential changes in the management or operation of the franchise system.
This clause is fairly standard in franchise agreements, as it allows the franchisor flexibility in managing its business and assets. However, the notification requirement ensures that franchisees are kept informed of important changes that could affect their business. Prospective franchisees should consider the implications of such a clause and ensure they are comfortable with the possibility of dealing with a different entity during the term of their franchise agreement.