If an audit of an Atwell Suites location reveals an overpayment, how will IHG handle the overpayment?

According to Atwell Suites's 2025 Franchise Disclosure Document, if an audit reveals an overpayment by the franchisee, IHG will handle it in one of two ways. IHG will either credit the overpayment, without interest, against future payments due from the franchisee under the License Agreement, or if the License Agreement has been terminated, IHG will promptly refund the overpayment, without interest, to the franchisee.

This policy ensures that Atwell Suites franchisees are not unfairly penalized for overpayments discovered during audits. The absence of interest on the overpayment is a standard practice, as it aligns with the general principle that neither party benefits from simple errors in accounting.

It is important for prospective Atwell Suites franchisees to understand the audit process and the potential financial implications, both in terms of deficiencies and overpayments. Maintaining accurate records, as required by the License Agreement, is crucial for minimizing discrepancies and ensuring smooth financial operations. Franchisees should clarify with IHG the specific procedures for handling overpayments and any related documentation requirements.