When is the monthly Royalty Fee due to IHG for an Atwell Suites franchise?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
For each month (or part of a month) during the License Term, Licensee will pay the fees set forth in this paragraph 3.B. to IHG, which shall be due to IHG by the "Due Date" (except as otherwise noted below including, without limitation, the Technology Services Fee which is payable monthly in advance). The term "Due Date" means the fifteenth (15th) day of the following month; but if the 15th day of the month falls on a weekend or bank holiday, then the Due Date shall be the next business day.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the monthly fees, including the Royalty Fee, are due to IHG by the 15th day of the following month. However, if the 15th falls on a weekend or bank holiday, the due date is shifted to the next business day. This means that the Royalty Fee for January's revenues, for example, would be due on February 15th, unless that date falls on a weekend or holiday.
This payment schedule is a standard practice in the franchise industry, allowing franchisees a short period to calculate revenues and remit the appropriate fees. Franchisees should be aware of this schedule to avoid late payment penalties or potential breaches of the franchise agreement.
It's important to note that while the Royalty Fee has a specific due date, Atwell Suites may require Licensees to pay all outstanding fees by electronic funds transfer, direct account debit, ACH, or other similar technology. Licensees are also required to maintain sufficient funds to cover all fees and payments owed to IHG and its Affiliates in a segregated bank account established and maintained for the hotel.