factual

What is the obligation of the franchisee regarding the Technology Services Fee for Atwell Suites?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

an approved vendor for these services. Employee Safety Devices must meet any applicable local laws and requirements.

Public Access Computers: Hotels are required to install designated workstations and a multi-function printer, providing complementary internet access to Hotel guests, in the Business Center ("Public Access Computers"). The Public Access Computers must be available 24 hours a day, must utilize SCH-approved security protection software and must include enrollment in a 24x7 support program offered by an SCH-approved vendor. In addition, all Public Access Computers are required to be refreshed every four years, a minimum of one computer must have Microsoft Office, and all must operate at the same or greater bandwidth port speed as other internet enabled devices on the Guest Internet Access network. You may be required to sign a participation agreement with an approved vendor for these services.

Note 8: Other Technology Systems: In connection with the installation of the Point of Sale (POS) systems for the bar and the market, your Hotel will be required to order an approved POS system, use an approved vendor to install the equipment, and enter into an agreement with them. Atwell Suites Hotels are also required to subscribe to and play a brand-specified music program in the public areas of the Hotel.

Hotels are required to install a service optimization application via an SCH approved third party vendor. Quore, LLC is the only SCH approved service optimization vendor. Quore's service optimization application provides workflow automation, integration to the In-Room Entertainment system for guest requests and facilitates compliance with cleanliness and maintenance standards. Installation of Quore's service optimization application is conducted through the use of mobile devices by hotel employees, connected via IHG Connect Wifi. Quore's service optimization application requires a subscription agreement, which is attached to the master services agreement between SCH and Quore, to be executed by the Hotel directly with Quore, LLC and payment may be made monthly or annually. A copy of the Quore subscription is attached as Exhibit G-9 to this disclosure document.

Atwell Suites are also required to subscribe to and play a brand-specified music program in the public areas of the Hotel. In connection with the installation of the POS systems for the Bar, your Hotel will be required to order an approved POS system, use an approved vendor to install the equipment, and enter into an agreement with them.

Note 9: Third Party Distribution Connection Fees: Holiday requires that all Atwell Suites Hotels participate in the IHG Commission Services ("ICS") program and the Global Distribution System ("GDS"). ICS was the first centralized commission payment program in the industry, and currently has approximately 165,000 participating travel agencies in 52 countries. SCH will provide you with a monthly invoice detailing all commissions and Distribution Connection fees that SCH pays for you. As a participant in ICS, you must pay the customary minimum of 10% of the GSR (or another percentage that Holiday designates) for the travel agent or other referral source booking. In some cases, Holiday is able to negotiate this percentage and it is subject to increase from time to time. As a participant in ICS, you are automatically enrolled in the GDS, which provides reservation linkage with the three current

major GDS – Travelport, Sabre, and Amadeus. You must pay a GDS fee for any reservation through the GDS that is not cancelled. The GDS Fee is currently set at $6.40 per reservation and is subject to change. Additionally, alternative connections may be developed between SCH and vendors which may be subject to transaction fees. Alternative connection transaction fees (such as the Direct Connect Fee and the Travel Management Company ("TMC") Direct Connect Fee) are determined by the cost of maintaining the connections to the pertinent third party distributors, including fees they charge. The Direct Connect fee is currently set at $1.75 per reservation and is subject to change. The TMC Direct Connect fee is currently set at $5.00 per reservation and is subject to change. The GDS fee and TMC Direct Connect fee are mutually exclusive. This means that a Hotel can be charged one or the other, but not both. You may pay all travel agent commission program fees, including commissions**,** by direct debit through Onyx Commission Processing. If you decline this option, you must pay SCH $2.00 per commissionable transaction billed in addition to the commission (unless you participate in IHG Secure Pay). Onyx rebates SCH 3.05% of commissions collected for their members and 3.50% of the total commission paid for most non-members, which is used to help offset the cost of operating the ICS program. These amounts are subject to change without notice. Additionally, ICS may be used as a mechanism to bill for other SCH programs such as IHG Voice Reservation Service cross-sell fees. The programs in which SCH uses ICS for billing may change from time to time.

IHG Ignite Program: All Hotels are automatically enrolled in the IHG Ignite Program ("IHG Ignite"). However, Hotels can opt-out if they do not want to participate in IHG Ignite.

Source: Item 6 — OTHER FEES (FDD pages 30–56)

What This Means (2025 FDD)

According to the 2025 Atwell Suites Franchise Disclosure Document, franchisees have several technology-related obligations that entail fees. Hotels are required to install designated workstations and a multi-function printer, known as Public Access Computers, in the Business Center for guests to access the internet. These computers must be available 24 hours a day and have SCH-approved security protection software, including enrollment in a 24x7 support program from an SCH-approved vendor. The Public Access Computers must be refreshed every four years, with at least one computer having Microsoft Office, and all must operate at the same or greater bandwidth port speed as other internet-enabled devices on the Guest Internet Access network.

Atwell Suites hotels must order an approved Point of Sale (POS) system for the bar and market, use an approved vendor for installation, and enter into an agreement with them. They are also required to subscribe to and play a brand-specified music program in public areas. Additionally, hotels must install a service optimization application via an SCH-approved third-party vendor, currently only Quore, LLC. This application requires a subscription agreement executed directly with Quore, LLC, with payments made monthly or annually.

For Guest Internet Access (IHG Connect), hotels must install approved Wi-Fi equipment, use a certified integrator for installation, and enter into a participation agreement with an approved integrator. Monthly service fees include a base per-suite fee for guest support and a variable fee for meeting room support based on the number of meeting rooms and meeting space exceeding 2,000 square feet. Additional costs may arise for wireless access points if a meeting space exceeds a capacity of 100. Franchisees must also use Cloud PMS, and at the time of the FDD, HotelKey is the only approved Cloud PMS provider. Hotels will be charged a PMS Solution Fee of $4.25 per room, per month, which may increase by no more than 5% annually, and a Cloud PMS Implementation Fee of $70.00 per month for the first 48 months of operation.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.