Is an unapproved assignment of the Atwell Suites agreement by the franchisee considered an Event of Default?

According to the 2025 Atwell Suites Franchise Disclosure Document, an unapproved assignment of the franchise agreement by the franchisee constitutes an Event of Default. Specifically, Section 12.3(b) states that "Any assignment of the Agreement by you in violation of Section 11.1" is considered an Event of Default.

This means that if an Atwell Suites franchisee attempts to transfer their rights or obligations under the franchise agreement without obtaining the franchisor's consent as required by Section 11.1, Atwell Suites has grounds to declare the franchisee in default.

An Event of Default can trigger various consequences, including potential termination of the franchise agreement. Franchisees should carefully review Section 11.1 regarding assignment conditions to avoid unintentionally triggering a default. It is important for prospective franchisees to understand the conditions under which they can or cannot assign their agreement to ensure they remain in compliance and avoid potential penalties or termination.