factual

For Atwell Suites, is there a requirement to purchase equipment, software, and services for property-level technology and telecommunications systems from designated third-party vendors?

Atwell_Suites Franchise · 2025 FDD

Answer from 2025 FDD Document

You must purchase equipment, software and services for property-level technology and telecommunications systems from third-party vendors whom Holiday designates or who meet Holiday's specifications. See Item 11.

Keycard System:

All Atwell Suites® Hotels must utilize an approved Keycard System that meets brand requirements. This includes the server, key encoders, installation, and support. It does not include the cost of the locks for the doors themselves. You must obtain ongoing maintenance and support for the required Keycard System software, including upgrades and new versions. You must also obtain ongoing equipment maintenance for the Keycard System hardware. The Keycard System Provider will bill and collect the fee from you for the required Keycard System hardware / software support. The costs will vary depending on the Hotel's specific technology needs, including the number of key encoders and servers at the Hotel. The Keycard System must interface with the Property Management System (PMS).

Property Management System:

You must install the certified equipment specified for the PMS as required by SCH. You must request a waiver to use an alternative source. The PMS equipment is also used for accessing the Reservation System. PMS equipment, software and maintenance are described in the Master Technology Services Schedule (Attachment "D" of the License). You must purchase PMS training, implementation, and hardware and software support services (see Item 6). You must also enter into a Joinder Agreement (Exhibit G-10) with Hewlett-Packard Inc. ("HP") in order to obtain the PMS system hardware, software and deployment services at your Hotel and for the procurement and installation of hardware, software, and installation services of a credit card solution at your Hotel. You must enter into a Microsoft Select Participation Agreement (Exhibit C to this disclosure document) which details the obligations under the provided software license (i.e. you cannot copy the license and use such license for unauthorized machines).

NextGen Payments:

SCH administers a computerized payment card processing program, NextGen Payments ("NGP"). All hotels are required to obtain and install NGP. NGP is a data security process designed to remove certain credit card information from our systems. Using PCI certified payment terminals, credit card data will be encrypted and converted to tokens before entering the PMS. SCH has contracted with FreedomPay to provide the tokenization application services. All Hotels are required to use NGP or such successor payments program as may be implemented by SCH. Hardware and software systems required to connect must be fully operational when the Hotel opens, with appropriate management and staff trained and competent to operate NGP at all times. Each licensee will be required to enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, and a participation agreement with FreedomPay and SCH (see Exhibit G-4 to this disclosure document).

Guest Internet Access – Bandwidth (IHG Connect):

For Guest Internet Access ("GIA") Bandwidth, a Hotel will be required to use a certified SCH approved integrator ("Integrator") provider and to sign an IHG Direct Hotel Participation Agreement with such provider, as may be approved by SCH from time to time, the form of which is attached as Exhibit G-5 to this disclosure document. Estimates for infrastructure needs can vary greatly by location. Actual costs can only be obtained once vendor site surveys are completed, due to the unique building and construction circumstances of a given property.

Guest Internet Access – Hardware (IHG Connect):

For Guest Internet Access ("GIA") Hardware, a Hotels will be required to install SCH approved Wi-Fi equipment and use an Integrator for the installation of Wi-Fi equipment. Estimates for infrastructure needs can vary greatly by location and building type. Due to unique building and construction of any given property, actual costs can only be obtained once Integrator site surveys are completed. The site survey will help determine the number and types of Wi-Fi equipment through a Wi-Fi heat map coverage diagram (see Item 6, Note 6).

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 65–73)

What This Means (2025 FDD)

According to Atwell Suites's 2025 Franchise Disclosure Document, franchisees are generally required to purchase specific equipment, software, and services for property-level technology and telecommunications systems from third-party vendors that the franchisor, Holiday, designates or who meet Holiday's specifications.

This requirement extends to several key systems within the hotel. Specifically, Atwell Suites hotels must utilize an approved Keycard System, including the server, key encoders, installation, and support. Franchisees are also obligated to obtain ongoing maintenance and support for the Keycard System software and hardware. For Guest Internet Access (GIA), franchisees must use a certified Holiday-approved integrator and sign an IHG Direct Hotel Participation Agreement. This applies to both the bandwidth and hardware components of the guest internet access.

The FDD also specifies that franchisees must install certified equipment for the Property Management System (PMS) as required by SCH and enter into a Joinder Agreement with Hewlett-Packard Inc. (HP) for PMS hardware, software, and deployment services. Furthermore, all hotels are required to obtain and install NextGen Payments (NGP), a payment card processing program, and enter into agreements with Fiserv and FreedomPay for merchant processing and tokenization services. These requirements ensure brand consistency and data security across all Atwell Suites locations, but they also limit the franchisee's choice of vendors and may impact costs.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.