For Atwell Suites, what is the required action regarding invoices received from SCH?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Client shall pay the amounts agreed to herein upon receipt of invoices which shall be sent by SCH, and Client shall pay the amount of such invoices to SCH. Any fees or other amounts due under this Agreement not received by SCH on or before such invoice is due shall bear interest at the rate of one and a half percent (1.5%) per month, calculated on a daily basis, until paid in full.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, Atwell Suites franchisees are required to pay the amounts agreed upon in their agreement with SCH (presumably for services rendered) upon receipt of invoices sent by SCH. If the franchisee fails to pay the invoice amount on time, the unpaid amount will accrue interest at a rate of 1.5% per month, calculated daily, until the full amount is paid.
This means that prompt payment of invoices from SCH is essential to avoid incurring additional interest charges. The interest rate, while seemingly small on a monthly basis, can add up significantly over time, increasing the overall cost of services provided. Franchisees should ensure they have a system in place to track and pay invoices from SCH in a timely manner.
This invoicing and payment structure is a fairly standard practice in franchising and other business relationships. It is important for franchisees to carefully review the service agreements and understand the payment terms, including due dates and any potential penalties for late payments. Maintaining good financial management practices is crucial for the success of any Atwell Suites franchise.