How long will funds be held in the Reserve Account after the Atwell Suites agreement terminates?

According to Atwell Suites's 2025 Franchise Disclosure Document, any funds held in the Reserve Account will be held for a minimum of ten months after the termination of the agreement. However, Atwell Suites may hold the funds for a longer period if it is consistent with their liability for card transactions and chargebacks, as per Card Organization Rules. After this period, Atwell Suites will return any remaining amounts in the Reserve Account to the franchisee.

This means that upon termination of the franchise agreement, an Atwell Suites franchisee will not have immediate access to the funds held in the reserve account. The funds are held to cover any potential liabilities related to card transactions or chargebacks that may arise after the agreement has ended. The actual length of time the funds are held could extend beyond ten months, depending on the franchisee's transaction history and potential chargeback risks.

This policy protects Atwell Suites from potential financial losses due to liabilities arising from the franchisee's operations, even after the franchise agreement has been terminated. For a prospective franchisee, this highlights the importance of maintaining a strong financial record and minimizing chargebacks to ensure the reserve funds are returned as quickly as possible after the agreement ends. Franchisees should factor this potential delay into their financial planning upon exiting the Atwell Suites system.