Does the Atwell Suites license agreement provide for renewal or extensions of the term?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In Agreement | Summary |
|---|---|---|
| a. Length of the License Term | License: 11.A | The term begins on the Term Commencement Date and expires 20 years from date Hotel opens in the Brand System for a new development; 10 or more years from date Hotel opens in the Brand System for a conversion; and 10 or more years from Term Commencement Date for a change of ownership or re-licensing. |
| b. Renewal or extension of term | License: 11.A | The License does not provide for renewal or term extensions. |
| c. Requirements for you to renew or extend | N/A | The License does not provide for renewal or term extensions. If we agree to Re-license, you may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — Renewal, Termination, Transfer, and Dispute Resolution (FDD pages 92–95)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, the license agreement does not provide for renewals or extensions of the term. The initial term length varies depending on the type of hotel development. For a new development, the term is 20 years from the date the hotel opens in the Atwell Suites brand system. For a conversion, the term is 10 or more years from the date the hotel opens in the brand system. In the case of a change of ownership or re-licensing, the term is 10 or more years from the Term Commencement Date.
While the Atwell Suites license agreement does not offer a renewal option, the FDD indicates that a franchisee may be able to re-license. However, if Atwell Suites agrees to re-license, the franchisee may be required to sign a new contract with terms and conditions that are significantly different from the original agreement. This means that a franchisee seeking to continue operating an Atwell Suites location after the initial term must be prepared to negotiate a new agreement that may include different fees, standards, and other obligations.
In the franchise industry, it is common for franchise agreements to include renewal options, often with specific requirements such as meeting certain performance standards, completing renovations, and paying a renewal fee. The absence of a renewal option in the Atwell Suites license agreement means that franchisees do not have a guaranteed right to continue operating under the brand after the initial term expires, which introduces an element of uncertainty for long-term business planning. Prospective franchisees should carefully consider this aspect and discuss the possibility of re-licensing with Atwell Suites during their due diligence process.