In the Atwell Suites license agreement, what information is required regarding the Licensee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
for the operation of the Hotel or any part thereof (including, without limitation, retail, food and/or beverage service facilities) with any natural person or entity without the prior written consent of IHG in each instance. The approval by IHG of any such lease, management agreement or other similar arrangement for operation of the Hotel or any part thereof shall in no way relieve, reduce, mitigate or waive any of the responsibilities of Licensee under this License, it being understood that all such responsibilities shall at all times remain the obligation of Licensee. Licensee must provide IHG with all information requested by IHG from time to time regarding ownership, control and management of the Hotel and of Licensee.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the licensee must provide certain information to IHG (InterContinental Hotels Group). Specifically, the licensee is required to provide IHG with all information requested regarding the ownership, control, and management of both the hotel and the licensee entity itself. This encompasses a broad range of data points that IHG may require throughout the duration of the license agreement.
This requirement ensures that Atwell Suites maintains oversight over who is operating and managing the hotel. It allows IHG to monitor compliance with brand standards and to assess the financial and operational stability of the franchisee. The licensee's obligation to provide this information is ongoing, meaning that IHG can request updates and additional details as needed.
Furthermore, the licensee must retain and exercise direct management control over the Hotel's business. They cannot enter into any lease, management agreement, or other similar arrangement for the operation of the Hotel or any part thereof with any natural person or entity without the prior written consent of IHG in each instance. This ensures that the licensee remains actively involved in the day-to-day operations and maintains responsibility for upholding Atwell Suites' standards. Even if IHG approves a third-party management arrangement, the licensee's responsibilities under the license agreement are not reduced or waived.
Additionally, if the real property used in the operation of the Hotel is owned directly or indirectly by Licensee or by a natural person or an Entity that owns any Equity Interest in Licensee and Licensee or that natural person or Entity proposes to transfer all or a substantial part of such property to a third party, such transfer shall constitute a transfer under the provisions of this License requiring an application for a new license agreement, unless Licensee receives IHG's prior written consent for the transaction.