What are the obligations of an Atwell Suites hotel regarding the maintenance and alterations of the Equipment?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall (a) ensure that the Equipment is kept in good and proper working condition, normal wear and tear excepted, (b) not make any alterations or improvements to the Equipment without the prior written approval of the manufacturer, and (c) operate and maintain the Equipment in accordance with the user manuals and documentation, and any instructions issued by the manufacturer from time to time.
Hotel shall not locate or relocate any Equipment without IHG's prior written consent.
IHG's consent may be conditioned upon Hotel's execution of a waiver agreement pursuant to which, among other things, the entity controlling the new location shall have waived any rights to the Equipment and agreed to surrender the Equipment to IHG or HPFS upon an event of default.
Hotel shall confirm the Equipment location in writing to IHG upon IHG's request.
Hotel covenants that it will not pledge or encumber any of the Equipment or the interest of HPFS in the Equipment in any manner whatsoever nor create or permit to exist any levy, lien or encumbrance thereof or thereon except those created by or through HPFS.
The Equipment shall remain the personal property of HPFS (during the initial 48-month Term) whether or not affixed to realty and shall not become a fixture or be made to become a part of any real property on which it is placed without the prior written consent of HPFS.
Hotel assumes any and all risk of loss or damage to the Equipment until such Equipment is returned to and received by HPFS or IHG in accordance with the terms and conditions of this Agreement or the IHG-HPFS agreement.
Hotel agrees to keep the Equipment insured at the expense of Hotel against all risks of loss from any cause whatsoever, including without limitation, loss by fire (including extended coverage), theft and damage, and such insurance shall cover not less than the replacement value of the Equipment.
Hotel shall name HPFS as a loss payee and an additional insured, as applicable, under such insurance policies.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, the hotel is responsible for maintaining the equipment in good working condition, with exceptions for normal wear and tear. The franchisee cannot make any alterations or improvements to the equipment without the manufacturer's prior written approval. The hotel must operate and maintain the equipment according to the user manuals, documentation, and any instructions issued by the manufacturer.
The Atwell Suites franchisee cannot locate or relocate any equipment without IHG's prior written consent. IHG's consent may require the franchisee to execute a waiver agreement, ensuring that the entity controlling the new location waives any rights to the equipment and agrees to surrender it to IHG or HPFS upon an event of default. The franchisee must confirm the equipment location in writing to IHG upon request.
The franchisee is prohibited from pledging or encumbering the equipment or HPFS's interest in the equipment in any manner, or creating any levy, lien, or encumbrance, except those created by or through HPFS. The equipment remains the personal property of HPFS during the initial 48-month term, regardless of whether it is affixed to realty, and it cannot become a fixture or part of any real property without HPFS's prior written consent. The hotel assumes all risk of loss or damage to the equipment until it is returned to HPFS or IHG. The franchisee must keep the equipment insured against all risks of loss, covering not less than the replacement value, and name HPFS as a loss payee and additional insured under the insurance policies.