What does the IHG System Fund Contribution for an Atwell Suites franchise consist of?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
"IHG System Fund Contribution" means the assessments paid by Licensee, comprised of the Services Contribution and the Loyalty Program Contribution, for the IHG System Fund Activities (as defined in paragraph 4.G) to be provided by IHG and its Affiliates.
- a. Services Contribution. A monthly Services Contribution in the amount set forth in Item 5 of Attachment "A". The Services Contribution will typically be invested by IHG in activities that, in IHG's sole business judgment as to the long-term interests of the Brand System, strengthen the brand such as awareness advertising, marketing, sales, guest services, reservations, standards, training programs, research, and the development of new or improved services, associated products and platforms, but may also include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs. The Service Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of the Hotel. The Services Contribution does not include costs that Licensee incurs in the acquisition, installation or maintenance of reservations services, equipment or training, or in Licensee's own marketing activities. IHG and its Affiliates are not responsible for any of these costs.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the IHG System Fund Contribution is comprised of two components: the Services Contribution and the Loyalty Program Contribution. This contribution is paid by the franchisee for the IHG System Fund Activities, which are managed by IHG and its affiliates.
The Services Contribution is a monthly fee that Atwell Suites typically invests in activities that strengthen the brand. These activities include awareness advertising, marketing, sales, guest services, reservations, standards, training programs, research, and the development of new or improved services, associated products, and platforms. IHG may also use the Services Contribution for tactical marketing initiatives focused on short-term revenue enhancement and seasonal marketing programs.
It is important to note that the Services Contribution cannot be used for the maintenance, repair, modernization, renovation, or upgrading of the Atwell Suites hotel. Additionally, the Services Contribution does not cover the costs that the franchisee incurs in acquiring, installing, or maintaining reservation services, equipment, or training, or in the franchisee's own marketing activities. IHG and its Affiliates are not responsible for these costs. The IHG System Fund Activities are organized and operated by IHG and its Affiliates for loyalty marketing services, distribution marketing services, brand marketing services and other such marketing and related programs and services for Brand System Hotels and the IHG Portfolio Brand Hotels.