Can SCH furnish guaranties to Atwell Suites licensees?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- C. Guarantor(s) will provide the Guaranty.
- D. In granting this non-exclusive license, IHG has relied upon the business skill, financial capacity, and character of Licensee and the Guaranty to be provided by the Guarantor(s).
Source: Item 10 — FINANCING (FDD page 75)
What This Means (2025 FDD)
Based on the 2025 Atwell Suites FDD, SCH (Six Continents Hotels, Inc.) itself does not furnish guaranties to Atwell Suites licensees. However, the FDD mentions the requirement of a Guaranty from a Guarantor.
The document states that IHG (InterContinental Hotels Group) relies on the business skill, financial capacity, and character of both the Licensee and the Guarantor providing the Guaranty when granting a non-exclusive license to operate a hotel under the Atwell Suites brand. This implies that a separate Guarantor, not SCH, is required to provide a guaranty.
Therefore, prospective Atwell Suites franchisees should be prepared to provide a guaranty from a qualified Guarantor, as IHG relies on this guaranty in granting the franchise license. The FDD does not specify who can act as a guarantor, but it is likely that IHG has requirements regarding the guarantor's financial standing and relationship to the franchisee.