How long will funds be held in the Reserve Account after the termination of the Atwell Suites franchise agreement?

According to the 2025 Atwell Suites Franchise Disclosure Document, any Reserve Account will be held by Atwell Suites for a minimum of ten months after the termination of the franchise agreement. However, Atwell Suites may hold the funds for a longer period if it is consistent with their liability for the franchisee's card transactions and chargebacks, as per the 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 Atwell Suites franchise agreement, a franchisee should expect that Atwell Suites will retain the funds in the Reserve Account for at least 10 months. The actual holding period could be longer depending on potential liabilities related to card transactions and chargebacks. This is to protect Atwell Suites from any financial risks associated with the franchisee's past operations.

It is important for prospective Atwell Suites franchisees to understand the terms and conditions related to the Reserve Account, especially concerning its funding, usage, and the duration for which funds will be held after termination. Franchisees should factor this potential hold on funds into their financial planning, particularly when considering the implications of terminating the agreement. Franchisees should also clarify with Atwell Suites what specific circumstances might lead to a longer holding period for the Reserve Account funds.