Regarding chargebacks for Atwell Suites transactions, who is responsible for all chargebacks and adjustments?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for all Chargebacks and adjustments associated with the transactions that you submit for processing.
With respect to Chargebacks – we do not decide which transactions are charged back and we do not control the ultimate resolution of Chargebacks.
While we can attempt to reverse a Chargeback to the Issuer, we can only do so only if the Issuer agrees to accept it or the Card Organization requires the Issuer to do so after a formal appeal process.
Sometimes, your customer may be able to successfully chargeback a Card transaction even though you have provided your goods or services and otherwise are legally entitled to payment from your customer.
While you still may be able to pursue claims directly against that customer, neither we nor the Issuer will be responsible for such transactions.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the franchisee is responsible for all chargebacks and adjustments associated with transactions they submit for processing. This means that if a customer disputes a charge and the chargeback is successful, the Atwell Suites franchisee will be the one to bear the financial loss.
Atwell Suites does not decide which transactions are charged back and does not control the ultimate resolution of chargebacks. While Atwell Suites can attempt to reverse a chargeback to the issuer, they can only do so if the issuer agrees to accept it or the card organization requires the issuer to do so after a formal appeal process. Even if the franchisee has provided goods or services and is legally entitled to payment, a customer may still be able to successfully chargeback a card transaction.
While the Atwell Suites franchisee may be able to pursue claims directly against the customer, neither Atwell Suites nor the issuer will be responsible for such transactions. This underscores the importance of franchisees implementing robust fraud prevention measures and maintaining excellent customer service to minimize the risk of chargebacks. Additionally, franchisees should familiarize themselves with the card organizations' rules and requirements regarding chargebacks to effectively dispute them when appropriate.