Is SCH obligated to make a loan to an Atwell Suites franchisee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not offer any formal program for direct or indirect financing. Holiday, SCH or its affiliate, General Innkeeping Acceptance Corporation ("GIAC"), may furnish loans or guaranties to licensees (See Item 10).
Source: Item 10 — FINANCING (FDD page 75)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, Six Continents Hotels, Inc. (SCH) is not obligated to provide financing to franchisees. Item 7 states that Atwell Suites does not offer any formal program for direct or indirect financing. However, the document indicates that Holiday, SCH, or its affiliate, General Innkeeping Acceptance Corporation (GIAC), may furnish loans or guaranties to franchisees.
This means that while there is no guarantee of financial assistance from Atwell Suites or its affiliates, there is a possibility that a loan or guaranty could be provided. This is not an obligation, but rather a discretionary option that Atwell Suites, SCH, or GIAC may exercise.
Prospective franchisees should not rely on receiving financing from Atwell Suites, SCH, or GIAC and should explore other financing options. It would be prudent for potential franchisees to discuss financing options with the franchisor during their due diligence process to understand the likelihood and terms of any potential financial assistance.