What laws must an Atwell Suites Hotel comply with regarding the Next-Gen Payments Solution?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall comply with the terms and conditions set forth in Attachment 1 (Third Party Terms – FreedomPay) and Attachment 2 (Third Party Terms – HPFS) to this Agreement (collectively, the "Third Party Terms").
Hotel shall use commercially reasonable care and discretion to avoid unau
Hotel agrees to certify in writing to IHG that it and each of its Affiliates, Hotel Agents, and Recipients have performed the foregoing.
These confidentiality obligations will not restrict any disclosure required by Law, provided that Hotel gives prompt notice to IHG of any such legal requirement and reasonably cooperates with IHG at IHG's request and expense to resist such legal requirement or to obtain a protective order.
Hotel shall be responsible for ensuring adequate security and backup procedures to avoid unauthorized access to, use of, or inadvertent loss of data and shall, in its discretion, determine appropriate security, which shall be no less than the standard of care in the industry.
(i) access or use the Next-Gen Payments Solution in any manner or for any purpose that infringes, misappropriates, or otherwise violates any Intellectual Property Rights or other rights of any third party, or that violates any applicable Law
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the hotel must adhere to all applicable laws when using the Next-Gen Payments Solution. Specifically, the hotel is prohibited from using the Next-Gen Payments Solution in any manner that violates any applicable law or infringes upon the intellectual property rights of third parties. This includes complying with the Third Party Terms outlined in Attachment 1 (Third Party Terms – FreedomPay) and Attachment 2 (Third Party Terms – HPFS) of the Next-Gen Payments Agreement.
Furthermore, the Atwell Suites franchisee must respect confidentiality obligations, which do not restrict any disclosure required by law, provided that the franchisee promptly notifies IHG of any such legal requirement and reasonably cooperates with IHG to resist such legal requirement or to obtain a protective order. The franchisee is also responsible for ensuring adequate security and backup procedures to prevent unauthorized access or loss of data, maintaining a standard of care consistent with industry practices.
In practical terms, this means that an Atwell Suites franchisee needs to ensure their use of the Next-Gen Payments Solution complies with data protection laws, privacy regulations, and any other relevant legislation concerning payment processing and data security. They should also stay informed about any changes to these laws and regulations and update their practices accordingly. Additionally, franchisees should carefully review and understand the Third Party Terms from FreedomPay and HPFS, as these terms also contain legal obligations that the hotel must follow.
Failure to comply with these legal requirements could result in penalties, legal action, and damage to the Atwell Suites brand's reputation. Therefore, it is crucial for franchisees to prioritize legal compliance and seek legal counsel if they are unsure about their obligations.