factual

What is the purpose of the Technology Services Fee for Atwell Suites?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

ction or the Hotel will be subject to fees covering the cost of such hardware (i.e., Managed Router, NIDS, etc.).

For Guest Internet Access ("GIA") Hardware (IHG Connect), a Hotel will be required to install approved Wi-Fi related equipment, use an approved certified approved integrator ("Integrator") provider to install the equipment and enter into a participation agreement with an approved Integrator (see the form agreement attached as Exhibit H-6 to this disclosure document and Item 8). Monthly service fees will 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 the amount of meeting space that exceeds 2,000 square feet. Additional installation and maintenance costs may also be incurred for wireless access points if a meeting space has a capacity in excess of 100. Hotels with existing contracts with hardware providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year. Hotels will need to renew software licensing for Wi-Fi hardware within five years of the original purchase claim date, on a specified date and then every five years thereafter.

If serviceability is a factor for any hotels the Out-of-Footprint Pricing will require approval from Licensee prior to proceeding with an order and special non-negotiated pricing may be needed to service the Hotel.

Software license renewal costs vary greatly and could range from $3,000 to $200,000. These costs are dependent on whether the existing equipment claimed at the location remains active at the time of renewal.

Hotels will be required to purchase new hardware equipment (i.e., MXs, Switch and APS) and any other auxiliary equipment) generally at the of the eighth year from the original purchased claim date. All equipment which has reached their end-of-life are required to be replaced immediately. Hardware refresh costs vary greatly and could range from $110 to $96,000. These costs are dependent on whether the existing equipment claimed at the location remains active at the time of the refresh.

In-Room Entertainment: All Hotels are required to install and maintain In-Room Entertainment Hardware. Your Hotel will be required to install approved TV sets and/or Set Top Boxes ("STBs") that are compatible with the Standards, use an Integrator to install the equipment, connect guest room TVs to the data port behind the TV that connects to a switch using an ethernet cable, and must enter into an agreement with one of them. Monthly service fees will include a base per-room fee for guest support. Hotels with existing contracts with In-Room Entertainment providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the Standards, and the Hotel has a right to terminate for convenience (without cause) and

without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year.

Employee Safety Devices: Hotels are responsible for installing an alert system that enables employees to notify Hotel management of an emergency with the push of a button ("Employee Safety Devices"). The Employee Safety Devices must be available to all employees that work in guest rooms, must instantly signal guest room and guest floor location when activated, must continuously update guest room and guest floor location, and must be tested every six months. In addition, all new employees, including contract and temporary, must receive training on the Employee Safety Devices, within the first 14 days of employment. Employee Safety Devices must be procured and installed by an approved supplier and meet defined requirements set forth in the Standards. You may be required to sign a participation agreement with 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.

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

What This Means (2025 FDD)

Based on the 2025 Franchise Disclosure Document, Atwell Suites franchisees are required to implement and maintain various technology systems and services, each entailing specific fees. These systems range from guest internet access to property management software and brand-specific music programs. The fees cover the costs associated with these technologies, including installation, subscription, support, and hardware/software updates. These technology requirements are intended to ensure brand consistency, enhance guest experience, and streamline hotel operations.

For Guest Internet Access (GIA), Atwell Suites hotels must install approved Wi-Fi equipment and contract with a certified integrator for installation and ongoing support. Monthly service fees include a base per-suite fee for guest support and a variable fee for meeting room support, particularly for spaces exceeding 2,000 square feet. Franchisees should budget for potential additional installation and maintenance costs for wireless access points in larger meeting spaces. Software licensing for Wi-Fi hardware must be renewed every five years, with costs varying significantly between $3,000 and $200,000 depending on the existing equipment. Hardware replacements are typically required every eight years, with costs ranging from $110 to $96,000, also dependent on the existing equipment.

In addition to GIA, Atwell Suites hotels are mandated to use Cloud PMS (Property Management System), with HotelKey being the only approved provider currently. The Cloud PMS solution fee is $4.25 per room per month, subject to annual increases of up to 5%. This fee covers the use of the Cloud PMS, which integrates property management activities with IHG systems, and includes support and training modules. There is also a Cloud PMS Implementation Fee of $70.00 per month for the first 48 months of operation, covering deployment activities. Franchisees must also subscribe to a brand-specified music program for public areas and install approved Point of Sale (POS) systems for the bar, which involves ordering approved equipment, using an approved vendor for installation, and entering into an agreement with them.

Furthermore, Atwell Suites hotels are required to install a service optimization application through Quore, LLC, the only SCH-approved vendor. This application automates workflows, integrates with the In-Room Entertainment system for guest requests, and facilitates compliance with cleanliness and maintenance standards. A subscription agreement with Quore, LLC is required, with payments made monthly or annually. These technology requirements and associated fees are essential for maintaining brand standards, providing a consistent guest experience, and ensuring efficient hotel management.

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.