Regarding Atwell Suites, what was the amount charged to general and administrative expenses in 2021 related to the settlement of a commercial dispute regarding owner returns during the pandemic?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
$18.0 million was charged to general and administrative expenses during the year ended December 31, 2021 in relation to a settlement of a commercial dispute regarding owner returns during the pandemic. The related settlement was paid during the year ended December 31, 2022 and was included in 'changes in accounts payable and accrued expenses' in the consolidated statements of cash flows.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, $18.0 million was charged to general and administrative expenses during the year ended December 31, 2021. This charge was related to the settlement of a commercial dispute concerning owner returns during the pandemic.
The settlement was paid during the year ended December 31, 2022, and it was included in 'changes in accounts payable and accrued expenses' in the consolidated statements of cash flows.
This information is relevant for prospective Atwell Suites franchisees as it provides insight into how the company handles financial disputes and settlements, particularly those arising from significant events like the pandemic. Understanding these financial resolutions can help franchisees assess the financial stability and risk management practices of Atwell Suites.