Regarding card transactions at an Atwell Suites franchise, what responsibilities does the Bank have, and what services are explicitly excluded from the Bank's obligations?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (a) Services Provided by Bank. Bank only provides, and its obligations and liability are limited to, sponsorship, settlement, and related Bank services for certain Card transactions, which do not include Non-Bank Card transactions or Non-Bank Services. For avoidance of doubt, Bank is not a party to the Agreement with respect to, and does not have any responsibilities or liability with respect to, transactions that Processor sponsors and settles under the Agreement or Conveyed Transactions.
- (b) Non-Bank Services. Non-Bank Services are provided to you by Processor, not by Bank. Bank is not responsible for, and has no liability to you in any way with respect to, Non-Bank Services. The provisions of the Agreement regarding Discover Card transactions, American Express Card transactions, and other Non-Bank Services are an agreement solely between you and Processor. Non-Bank Services are subject to all terms and provisions of these Terms and Conditions. To the extent terms specific to a Non-Bank Service directly conflict with another provision of the Agreement, the terms specific to the Non-Bank Service will control with respect to such Non-Bank Service.
- (c) Conveyed Transactions. The following terms apply to Conveyed Transactions: (a) Processor (not Bank) will provide an Authorization response to Authorization requests; (b) Processor and Bank do not have any responsibility or liability for funding, sponsoring, or settling Conveyed Transactions; (c) you must enter into, and comply with the terms of, a separate agreement with the Card Organization or Issuer that settles Conveyed Transactions ("Issuer Agreement"), and must pursue directly with such Card Organization or Issuer all related claims and disputes; (d) the Card Organization or Issuer that settles Conveyed Transactions may charge additional fees and amounts, for which you are exclusively responsible and liable; and (e) if the Issuer Agreement has been terminated, suspended, or is not in effect, Processor does not have any obligation to provide any Services for Conveyed Transactions.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the Bank's responsibilities are limited to sponsorship, settlement, and related banking services for certain card transactions. These services specifically exclude non-bank card transactions or non-bank services. The Bank is not a party to agreements concerning transactions that the Processor sponsors and settles or conveyed transactions, and therefore has no responsibilities or liability for them.
Non-bank services are provided to the Atwell Suites franchisee by the Processor, not the Bank. The Bank bears no responsibility or liability for these non-bank services. Agreements regarding Discover Card transactions, American Express Card transactions, and other non-bank services are solely between the franchisee and the Processor. These non-bank services are subject to the terms and conditions outlined in the agreement, and in case of conflicts, the terms specific to the non-bank service will prevail.
For conveyed transactions, the Processor, not the Bank, provides authorization responses. Neither the Processor nor the Bank is responsible for funding, sponsoring, or settling these transactions. The Atwell Suites franchisee must have a separate agreement with the card organization or issuer to settle conveyed transactions and handle any related claims or disputes directly with them. The card organization or issuer may also charge additional fees for which the franchisee is exclusively responsible. If the issuer agreement is terminated or not in effect, the Processor has no obligation to provide services for conveyed transactions.
In practical terms, this means that Atwell Suites franchisees need to understand the different roles of the Bank and the Processor in handling card transactions. The Bank's role is limited to traditional Visa and Mastercard transactions, while the Processor handles non-bank card transactions like Discover and American Express. Franchisees must also manage separate agreements and potential fees with card organizations for conveyed transactions. Franchisees should carefully review their agreements with both the Bank and the Processor to fully understand their respective responsibilities and liabilities.