Are liquidated damages and termination penalty provisions included in Atwell Suites licenses issued in the State of Minnesota?

According to Atwell Suites' 2025 Franchise Disclosure Document, liquidated damages and termination penalty provisions are deleted from licenses issued in the State of Minnesota. This means that if an Atwell Suites franchisee in Minnesota breaches the franchise agreement and the agreement is terminated, Atwell Suites cannot impose pre-determined financial penalties or damages on the franchisee as a result of the termination.

This protection is further reinforced by Minnesota state law, specifically Minn. Stat. §80C.21 and Minn. Rule 2860.4400J, which prohibit Atwell Suites from requiring litigation to be conducted outside Minnesota, requiring waiver of a jury trial, or requiring franchisees to consent to liquidated damages, termination penalties, or judgment notes. These regulations ensure that Minnesota franchisees retain their legal rights and are not subjected to unfair financial burdens upon termination.

Moreover, the FDD states that no release language in the franchise agreement will relieve IHG (the parent company of Atwell Suites) from liability imposed by Minnesota franchise laws. Additionally, any statement or acknowledgment signed by a franchisee cannot waive claims under state franchise law or disclaim reliance on statements made by the franchisor. This provision is designed to protect franchisees from inadvertently relinquishing their rights through contractual clauses or acknowledgments.