Does Atwell Suites require me to authorize the establishment of a Reserve Account?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
lists, such as the Member Alert To Control Highrisk (Merchants) ("MATCH"), who have had their merchant agreements or Card acceptance rights terminated for cause. If the Agreement is terminated for cause by us due to an Event of Default by you, you acknowledge that we may be required to report your business name and the names and other information regarding your principals to the Card Organizations for inclusion on such list(s). You expressly agree and consent to such reporting if you are terminated as a result of the occurrence of an Event of Default or for any reason specified as cause by Visa, Mastercard or Discover. Furthermore, you agree to waive and hold us harmless from and against any and all claims which you may have as a result of such reporting.
- 12.8 Termination Assistance. For up to ninety (90) days following the date of termination of the Agreement, and at your request, we will provide to you, at no additional charge (other than the Servicers Fees, Third Party Based Fees, and other amounts due under the Agreement), such assistance, including the continued performance of the Services, as may be reasonably required to transition you from us to an alternative service provider (the "Termination Assistance Services"). As part of such Termination Assistance Services, we will provide continued access to our reporting system for Chargeback retrieval. Notwithstanding the foregoing, we are not required to provide Termination Assistance Services if the Agreement is terminated due to: (a) a Compromised Data Event; (b) your breach of your obligations with respect to the Reserve Account in Section 13; (c) your failure to maintain sufficient funds in the Settlement Account; (d) fraud or excessive Chargebacks; or (e) the request or requirement of any Card Organization. For avoidance of doubt, all terms and provisions of these Terms and Conditions, the Fee Schedule, and the other components of the Agreement apply to any Termination Assistance Services.
13 RESERVE ACCOUNT; SECURITY INTEREST
13.1 Reserve Account Generally. You expressly authorize us to establish a Reserve Account pursuant to the terms and conditions set forth in this Section 13. The amount of such Reserve Account shall be set by us and may be adjusted by
us from time to time, in our sole discretion, based upon your processing history and the potential risk of loss to us as we may determine from time to time.
13.2 Funding the Reserve Account.
- (a) Timing. The Reserve Account shall be fully funded: (i) immediately in instances of fraud, suspected fraud, the occurrence of an Event of Default, or any party providing notice of termination of the Agreement;
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, franchisees must authorize the establishment of a Reserve Account. Atwell Suites has the right to set the amount of the Reserve Account and adjust it based on the franchisee's processing history and potential risk of loss to Atwell Suites.
The Reserve Account can be funded immediately in cases of fraud, suspected fraud, an Event of Default, or if a party provides notice of termination of the agreement. Otherwise, Atwell Suites will provide three days' notice if the Reserve Account is required for any other reason. Funding can be done through debits to the franchisee's Settlement Account, collection of payments otherwise due to the franchisee, or with Atwell Suites' consent, a letter of credit.
Atwell Suites will hold the Reserve Account for at least ten months after the agreement terminates or longer if required by Card Organization Rules related to card transactions and chargebacks. The remaining funds will be returned to the franchisee at that time. Unless required by law, franchisees are not entitled to interest on funds held in the Reserve Account. Atwell Suites can use the Reserve Account to cover Servicers Fees, Third Party Based Fees, Chargebacks, and other amounts related to the agreement. If the Reserve Account is insufficient, the franchisee must promptly pay the remaining amounts.