What obligations must an Atwell Suites licensee satisfy to IHG and its affiliates before a change of ownership can be approved?

According to the 2025 Atwell Suites Franchise Disclosure Document, a licensee seeking approval for a change of ownership must fulfill specific obligations to IHG and its affiliates. These obligations primarily involve settling all outstanding financial commitments and releasing IHG from potential liabilities.

Specifically, the licensee must satisfy all accrued monetary obligations to IHG and its affiliates. This includes not only invoiced amounts but also a reasonable estimate of costs and fees that have not yet been invoiced. Additionally, the licensee is required to execute a general release, in a form prescribed by IHG, which waives any and all claims against IHG, its affiliates, and their respective officers, directors, agents, and employees. This release covers the licensee and its affiliates, ensuring a comprehensive waiver of potential legal actions.

These requirements ensure that IHG is protected from any outstanding debts or potential legal issues before a new owner takes over the Atwell Suites franchise. By settling all financial obligations and securing a release of claims, IHG mitigates risks associated with the transfer of ownership and maintains the integrity of the Atwell Suites brand. Failure to meet these conditions can result in the denial of the change of ownership application, potentially leading to an unauthorized transfer and subsequent breach of the license agreement.