Does SCH commit to perform certain post-sale obligations for Atwell Suites?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Note 5*: If you are required to purchase subsequent training materials for any of the training programs described in Item 11, Holiday estimates that such subsequent training materials will cost no more than a total of $5,000 per Hotel for all trainees combined.
Other Assistance During the Operation of the Hotel:
After the opening of the Hotel (see paragraph 4 of the License), Holiday will:
- (a) seek to maintain high standards of quality, cleanliness, appearance and service at all Hotels using the Brand System, to promote, protect and enhance the public image and reputation of the Atwell Suites® name, and to increase the demand for services offered by the Brand System. Holiday's judgment in these matters will be controlling in all respects, and Holiday will have wide latitude in making its judgments;
- (b) provide required and optional training programs at various locations, including Holiday's headquarters;
- (c) provide access to reservation services, if you are in compliance with your material obligations under the License;
- (d) use the "Services Contribution" (see Item 6) for marketing, reservations, and other related activities which, in Holiday's business judgment as to the long-term interests of the Brand System, support marketing, reservations, and other related functions. Holiday will make available and use Services Contribution funds computed on the basis generally applicable to licensees of the Brand System. Holiday has no obligation to spend more funds for marketing, reservations or related services than Holiday receives from licensees using the Brand System and those funds made available by Holiday as described above;
Advertising or promotional support or funding may become available to SCH, Holiday or their affiliates from third parties on account of the totality of the activities of SCH, Holiday and their affiliates, including Hotels operated under the Brand System. Holiday, SCH or their affiliates can use or designate any of this support and/or funding to benefit their enterprises as a whole, in whatever proportion and manner as they decide reasonably promotes their enterprises as a whole, using reasonable good faith business judgment.
Source: Item 21 — Financial Statements (FDD pages 98–99)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, Holiday (presumably referring to SCH, as SCH and Holiday are mentioned together frequently) outlines several post-opening obligations to support franchisees. These obligations include maintaining quality standards across all Atwell Suites hotels, providing required and optional training programs, and offering access to reservation services, assuming the franchisee is meeting their obligations under the License Agreement. Holiday also commits to using the 'Services Contribution' (as detailed in Item 6) for marketing, reservations, and related activities that support the Brand System's long-term interests. However, Holiday's judgment in these matters is controlling, and they have wide latitude in making decisions.
Holiday is not obligated to spend more on marketing, reservations, or related services than it receives from franchisees within the Brand System, plus any funds made available by Holiday. Furthermore, any advertising or promotional support received by SCH, Holiday, or their affiliates from third parties can be used to benefit their enterprises as a whole, in whatever proportion and manner they deem reasonably promotes their enterprises, using reasonable good faith business judgment.
Holiday also states that it may communicate improvements and developments in the Brand System, including advancements in reservation services, marketing, operations, administrative technical and support functions, facilities, and programs, if they determine to do so. They may also enter into arrangements with other entities for developments to the Brand System. These post-sale obligations are subject to Holiday's discretion and business judgment, which means that while they commit to providing support, the specifics and extent of that support can vary.