When does IHG have no obligation to provide Atwell Suites franchisees with reservation services for the Hotel?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
During the License Term, so long as Licensee is in full compliance with its obligations hereunder, IHG will afford Licensee access to reservation service for the Hotel under the terms of the Master Technology Services Schedule set forth in Attachment "D" hereto. However, IHG has no obligation to afford Licensee access to reservation service for the Hotel regarding reservations for any date after the expiration date of this License or for any date after the termination date established by IHG, following any applicable notice period or any applicable opportunity to cure.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, IHG is obligated to provide franchisees access to reservation services during the license term, assuming the franchisee is in full compliance with their obligations. However, IHG has no obligation to provide reservation services after the license expiration date or after the termination date established by IHG, following any applicable notice period or opportunity to cure.
This means that an Atwell Suites franchisee's access to IHG's reservation system, a crucial component for attracting guests and maintaining occupancy, is contingent upon remaining in good standing and adhering to the terms of the franchise agreement. If the agreement expires or is terminated due to a breach by the franchisee, IHG is no longer required to provide these services.
For a prospective franchisee, this highlights the importance of understanding and complying with all terms of the license agreement to maintain access to IHG's reservation services. Failure to comply could result in the loss of reservation support, which could significantly impact the hotel's revenue and occupancy rates. Franchisees should pay close attention to the conditions for termination and ensure they have a plan to address any potential breaches of the agreement.