What obligations related to transactions and disputed payments survive the termination of the Atwell Suites agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
12.6 Effect of Termination. Upon expiration or termination of the Agreement:
(a) All obligations by a party to pay or reimburse the other party for any obligations associated with transactions you have submitted to us or disputed payments will survive termination of the Agreement until finally and irrevocably paid in full and settled.
(b) You shall continue to bear total responsibility for all Chargebacks, fees, and other amounts (including all Servicers Fees and Third Party Based Fees) associated with transactions submitted by you or by any assignee or transferee of the Agreement not previously approved by us, and for all activity under your Merchant Account, until all such Servicers Fees, Third Party Based Fees, Chargebacks, and other amounts have been paid in full (and regardless of whether such transactions were submitted and such activity occurred before or after termination).
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, certain financial obligations related to transactions and disputed payments will continue even after the franchise agreement is terminated. Specifically, any obligation to pay or reimburse the other party for transactions submitted or disputed payments will survive until fully paid and settled. This means that if an Atwell Suites franchisee owes money for transactions processed before termination, they are still responsible for paying it.
Furthermore, the franchisee remains responsible for all chargebacks, fees, and other amounts associated with transactions they submitted, or that were submitted by any unapproved assignee or transferee of the agreement. This includes all Servicers Fees and Third Party Based Fees, and covers all activity under the franchisee's Merchant Account. This responsibility continues until all such fees, chargebacks, and other amounts have been paid in full, regardless of whether the transactions occurred before or after the termination date.
In practical terms, this means that even after an Atwell Suites franchise agreement ends, the franchisee needs to ensure all financial matters related to transactions and potential chargebacks are resolved. Failure to do so could result in continued financial liability, even without the ongoing operation of the franchise. This is a standard practice in franchising, as it protects the franchisor and service providers from losses related to transactions that occurred during the franchise term.