Are there any exceptions to the requirement that Atwell Suites franchisees use the specified provider as their exclusive provider of all Services within the United States of America?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
that is not permitted under the Interpretive Opinion is deleted in its entirety and shall have no force or effect.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
(Signature page follows)
| Balances relating to these leases are as follows (in thousands): | | | | | | |---|---|---|---|---|---| | | 2024 | 2023 | 2022 | | | | Undiscounted cash flows for sales-type sub-leases | $ 8,096 $ 6,405 | | | | $ - | | Interest income over the remaining lease term | (604) | (583) | | - | | | Net investment in lease | $ 7,492 | | $ 5,822 | | $ - | Maryland Amendment
Amendment To The Holiday Hospitality Franchising, LLC Atwell Suites License Agreement Pursuant To The Minnesota Franchise Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License") the following provisions shall supersede and apply to each License for an Atwell Suites Hotel issued in the State of Minnesota:
- The following language will appear at the end of paragraph 13.B of the License:
"Pursuant to Minn. State. Sec. 80C.21, this paragraph shall not in any way abrogate or reduce any rights of the Licensee as provided for in the Minnesota Statutes 1987, Chapter 80C, including, but not limited to, the right to submit matters to the jurisdiction of the courts of Minnesota.
Minnesota law provides licensees with certain termination and non-renewal rights. Minnesota Statutes, Section 80C.14 subdivisions 3, 4, and 5 require, except in certain specified cases, that a licensee be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the License."
- Section 6 of the License is amended by adding the following language:
"The Minnesota Department of Commerce requires that IHG indemnify Minnesota licensees against liability to third parties resulting from claims by third parties that the Licensee's use of IHG's trademark infringes trademark rights of the third party. IHG does not indemnify against the consequences of Licensee's use of IHG's trademark except in accordance with the requirements of the License, and, as a condition to indemnification, Licensee must provide notice to IHG of any such claim within ten (10) days and tender the defense of the claim to IHG. If IHG accepts the tender of defense, IHG has the right to manage the defense of the claim including the right to compromise, settle or otherwise resolve the claim, and to determine whether to appeal a final determination of the claim."
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- Liquidated damages and termination penalty provisions are deleted from Licenses issued in the State of Minnesota.
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- In accordance with the provision under Federal Bankruptcy Law (11.U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by Federal Bankruptcy Law and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- Minn. Stat. §80C.21 and Minn.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
Based on the 2025 FDD, there are some exceptions to the standard Atwell Suites license agreement for franchisees in specific states.
For Atwell Suites franchisees in Minnesota, the FDD states that paragraph 13.B of the license agreement is modified to ensure that the paragraph does not reduce any rights of the licensee as provided for in the Minnesota Statutes, Chapter 80C, including the right to submit matters to the jurisdiction of the courts of Minnesota. Additionally, Minnesota law requires that franchisees be given 90 days' notice of termination (with 60 days to cure) and 180 days' notice for non-renewal of the license, except in certain specified cases. Section 6 of the license is also amended to require IHG to indemnify Minnesota licensees against liability to third parties resulting from claims that the Licensee's use of IHG's trademark infringes trademark rights of the third party.
For Atwell Suites franchisees in Virginia, the FDD states that paragraphs 11.C(1)(b) and (d) of the License Agreement shall be amended to include the following language: "Enforceability of this provision is a matter governed by Federal Bankruptcy Law and enforceability or nonenforceability is subject to such law and rulings of a court of competent jurisdiction." The Virginia Code Sections 13.1-557-574-13.1-564 provide: "It shall be unlawful for a franchisor to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to it by any provision contained in the franchise." If any ground for default or termination stated in the License does not constitute "reasonable cause," as that term may be defined in the Virginia Code, that provision may not be enforceable.