What is the procedure if an Atwell Suites hotel has unpaid invoices for Company Beverages?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Any unpaid invoices will be handled as follows (the "Unpaid Invoice Procedure"): All unpaid invoices by a Hotel will be subject to Company's payment/credit terms and conditions applicable to such Hotel. Furthermore, Company may refuse to deliver further any Company Beverages to the affected Hotel until the unpaid invoice is satisfied.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, unpaid invoices from an Atwell Suites hotel will be addressed through the company's standard payment/credit terms. Specifically, Atwell Suites may refuse to deliver any further Company Beverages to the hotel with the outstanding balance until the invoice is paid.
This policy ensures that Atwell Suites hotels maintain good financial standing with the company. For a prospective franchisee, this means that managing cash flow and paying invoices promptly is crucial to ensure a continuous supply of Company Beverages. Failure to do so could disrupt beverage service at the hotel, potentially affecting guest satisfaction and revenue.
This type of policy is fairly standard in franchising, as franchisors need to ensure consistent payment and adherence to financial obligations across all franchise locations. Franchisees should carefully review the payment/credit terms and conditions to fully understand their responsibilities and avoid any interruptions in supply.