Who is responsible for obtaining adequate financing for all expenses related to the development, opening, and operation of an Atwell Suites hotel?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Throughout the entire License Term, Licensee will at its sole cost and expense:
- (1) maintain a high moral and ethical standard and atmosphere at the Hotel;
- (2) maintain the Hotel in a clean, safe and orderly manner and in first class condition;
- (3) provide efficient, courteous and high-quality service to the public in a clean, safe and orderly manner, including, without limitation, maintaining minimum product and service quality standards and scores for quality assurance and guest survey programs established and maintained by IHG, as such programs may be modified by IHG from time to time;
- (4) operate the Hotel 24 hours a day every day in accordance with the Standards, except as otherwise permitted by IHG in writing based on special circumstances;
- (5) strictly comply in all respects with the Standards (as they may from time to time be modified or revised by IHG) and with all other policies, procedures and requirements of IHG which may be from time to time communicated to Licensee (which communication, at IHG's option, may be in hard paper copy or digital, electronic or computerized form, and Licensee must pay any costs to retrieve, review, use or access such digital, electronic or computerized communication);
- (6) strictly comply with all of IHG's standards and specificati
Source: Item 10 — FINANCING (FDD page 75)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the franchisee, referred to as the 'Licensee,' is solely responsible for all costs and expenses related to the operation of the hotel throughout the entire license term. This includes maintaining the hotel, providing high-quality service, and complying with Atwell Suites' standards and requirements. The FDD also mentions that Holiday may consider the ability to obtain financing when evaluating requests for construction deadline extensions, implying that securing financing is the franchisee's responsibility.
This means that prospective Atwell Suites franchisees must secure their own funding for all aspects of the business, from initial development and construction to ongoing operations and maintenance. Franchisees should carefully consider all potential costs and ensure they have sufficient capital or access to financing before entering into a franchise agreement. This is a standard practice in the franchise industry, as franchisees are typically independent business owners responsible for their own financial arrangements.
While Atwell Suites does not directly provide financing, they may offer assistance in the form of prototype architectural plans and specifications for products and materials. Additionally, SCH may determine to fund purchases from approved suppliers before the hotel opens, but the franchisee is required to reimburse SCH for these purchases. Franchisees should inquire about any available resources or preferred lending partners that Atwell Suites may have to assist with financing.
Ultimately, the success of an Atwell Suites franchise depends on the franchisee's ability to manage their finances effectively and secure the necessary funding to meet all operational and developmental requirements. Franchisees should develop a comprehensive business plan and financial projections to ensure they are adequately prepared for the financial demands of operating an Atwell Suites hotel.