Under what circumstances are Atwell Suites franchisees required to indemnify the FDSH Indemnitees?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee agrees to pay IHG all expenses, including attorneys' fees and court costs, incurred by IHG or any of the other Indemnitees, and their successors and assigns, to remedy any defaults of or enforce or defend itself or any rights under this License (including without limitation any claim, cross-claim or counter-claim brought by Licensee), to effect termination of this License or collect any amounts due under this License.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, franchisees agree to pay all expenses incurred by IHG (InterContinental Hotels Group) or any other Indemnitees, including attorneys' fees and court costs. These expenses must be related to remedying any defaults, enforcing or defending rights under the License, effecting termination of the License, or collecting amounts due under the License. This includes any claim, cross-claim, or counter-claim brought by the franchisee.
This means that if Atwell Suites (or IHG) incurs legal or other expenses due to a franchisee's default or to enforce the franchise agreement, the franchisee is responsible for covering those costs. This obligation extends to legal actions initiated by the franchisee against Atwell Suites, where Atwell Suites successfully defends itself.
This type of clause is relatively standard in franchise agreements, as it aims to protect the franchisor from financial losses resulting from franchisee-related disputes or breaches of contract. Prospective Atwell Suites franchisees should be aware of this obligation and factor potential legal costs into their financial planning. It is advisable to fully understand the terms of the license agreement and seek legal counsel to clarify the scope of this indemnification clause.