Does IHG have the power to hire or fire Atwell Suites licensee's employees?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
I. Employees of the Hotel.
Licensee must ensure suitable, qualified individuals are employed at the Hotel in such number as is sufficient to staff all positions at the Hotel in accordance with the Standards.
None of Licensee's employees will be considered to be IHG's employees.
Licensee acknowledges and agrees that Licensee, or its management company engaged to operate the Hotel, as may be applicable, is the sole employer of the employees working at the Hotel and that IHG does not directly or indirectly control employment policies, discipline, recruitment or termination and that Licensee is solely responsible for all employment decisions, regardless of whether Licensee has received guidance with respect to such matters from IHG.
Neither Licensee nor any of Licensee's employees whose compensation Licensee pays may in any way, directly or indirectly, expressly or by implication, be construed to be IHG's employee for any purpose, including but not limited to with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency.
IHG will not have the power to hire or fire Licensee's employees.
Licensee expressly agrees, and will never contend otherwise, that IHG's authority under this License to approve certain of Licensee's employees for qualification to perform certain functions for the Hotel does not directly or indirectly vest in IHG the power to hire, fire or control any such employee.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, IHG (InterContinental Hotels Group) does not have the power to hire or fire the licensee's employees. The FDD states that the licensee, or their management company, is the sole employer of the hotel's employees. IHG does not directly or indirectly control employment policies, discipline, recruitment, or termination decisions. The licensee is solely responsible for all employment decisions, even if they have received guidance from IHG.
Furthermore, the FDD clarifies that neither the licensee nor their employees can be construed as IHG's employees for any purpose, including insurance coverage, taxes, or withholdings. The licensee is responsible for ensuring that the hotel employs suitable and qualified individuals in sufficient numbers to staff all positions in accordance with the brand's standards.
Even though IHG may approve certain employees for specific functions at the Atwell Suites hotel, this authority does not give IHG the power to hire, fire, or control any employee. Any training provided by IHG to the licensee's employees is intended to impart the hotel's procedures, protocols, systems, and operations, and does not reflect an employment relationship between IHG and the employees. The licensee agrees to assist IHG in defending against any assertion that IHG is the employer of the licensee's employees.