Who is responsible for the payment of applicable taxes, deposits, and other government-mandated fees related to the prices quoted in the Atwell Suites agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.5 Taxes.
All Taxes resulting from the provision of the Next-Gen Payments Solution under this Agreement shall be the responsibility of Hotel.
If IHG is required to pay any such Taxes or penalties or interest relating thereto, IHG will provide an invoice for such amounts and Hotel will pay such amounts within thirty (30) days of the date of the invoice.
5.5 Taxes. All Taxes resulting from the provision of the Curated Solutions under this Master Technology Schedule (except for taxes based solely on the net income of IHG and its Affiliates) shall be the responsibility of Licensee. If IHG is required to pay any such Taxes or penalties or interest relating thereto, IHG will provide an invoice for such amounts and Licensee will pay such amounts within thirty (30) days of the date of the invoice.
(b) Errors, Shipping and Handling, Taxes, and Other Amounts. As part of your obligations, you agree to pay and reimburse us for all funds and deposits erroneously credited to your Settlement Account or Merchant Account, all shipping and handling fees related to Equipment and Supplies, and all Taxes (and you authorize us, or our respective assigns, to increase the amount of any preauthorized payment to reflect any increases in Taxes, and you waive any requirement for notice of such increase).
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the franchisee, referred to as 'Hotel' or 'Licensee,' is generally responsible for the payment of taxes, fees, and other charges related to the services and solutions provided under the franchise agreement.
Specifically, the 'Hotel' is responsible for all taxes resulting from the Next-Gen Payments Solution and the PMS Solution. If IHG (InterContinental Hotels Group) is required to pay any of these taxes, penalties, or interest, they will invoice the 'Hotel,' who must pay the invoiced amount within thirty days. Additionally, the 'Licensee' is responsible for all taxes resulting from the provision of the Curated Solutions, except for taxes based solely on the net income of IHG and its affiliates.
The franchisee is also responsible for fees such as Servicers Fees, Card Organization Fees, Third Party Based Fees, and Chargebacks. They must also reimburse Atwell Suites for funds erroneously credited, shipping and handling fees, and all taxes. This means that as an Atwell Suites franchisee, you should budget for these additional costs and ensure timely payment to avoid penalties or service disruptions.