What is the length of the Initial Term of the Atwell Suites agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Term and Extension. This Agreement is effective upon signing, and the term of 48 months will begin upon activation of the PMS Solution at the Hotel (the "Initial Term"). The Agreement will automatically renew for successive renewal terms of 12 months (each, a "Renewal Term") upon the expiration of the Initial Term and each Renewal Term, unless a Party gives written notice of non-renewal to the other Parties at least 90 days prior to the end of the Initial Term or then-current Renewal Term, as applicable. The Initial Term and Renewal Terms shall collectively be referred to as the "Term".
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, the initial term for the PMS (Property Management System) Solution agreement is 48 months, beginning upon activation of the PMS Solution at the hotel. This means that once the HotelKey PMS Solution is up and running at the Atwell Suites location, the franchisee is committed to a 4-year agreement for these services.
Following the initial 48-month term, the agreement automatically renews for successive 12-month periods, unless either party provides written notice of non-renewal at least 90 days before the end of the current term. This auto-renewal clause ensures continuity of service unless a conscious decision is made to terminate the agreement.
It is important for a prospective Atwell Suites franchisee to understand the terms of this PMS Solution agreement, as it represents a significant commitment. Failing to provide adequate notice of non-renewal will result in an additional year being added to the agreement. Franchisees should also be aware that the agreement's continuation is contingent on the Hotel's overarching agreement and IHG's agreement with HotelKey; termination of either of those agreements would impact the PMS Solution agreement.