Under what circumstances might Holiday reject a proposed management company for an Atwell Suites franchise?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
If Holiday requires that you hire a management company, General Manager and/or Director of Sales to operate your Hotel, it may require that you hire this company or person within a specific period of time either after signing your License or before the date your Hotel opens in the Brand System. You must notify Holiday in the designated timeframe before hiring or changing any of these positions for any reason. These conditions would be determined by Holiday and contained in your License. Holiday may reject a proposed management company if Holiday determines that it is inexperienced in the hospitality business, generally unqualified to operate the Hotel or unwilling or unable to: (1) comply with all requirements of Holiday under the License and the Standards, (2) cease operating the Hotel as a Holiday licensed Hotel once the License terminates, (3) treat the terms of the License as superior over any conflicting terms in the agreement between you and your management company.
Holiday may determine that you are not qualified to operate the Hotel, and if so, Holiday will require you to retain a management company to operate the Hotel.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 90–92)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, Holiday, the franchisor, has the right to reject a proposed management company under specific circumstances. If Atwell Suites requires a franchisee to hire a management company to operate their hotel, Holiday may reject the proposed company if it determines the company is inexperienced in the hospitality business or generally unqualified to operate the hotel.
Specifically, Holiday may reject a management company that is unwilling or unable to comply with all of Holiday's requirements under the License and the Standards. This ensures that the management company adheres to the brand's operational guidelines and maintains the quality standards expected of an Atwell Suites hotel. Additionally, Holiday may reject a management company that is unwilling or unable to cease operating the hotel as a Holiday-licensed hotel once the License terminates. This provision protects Holiday's brand integrity and prevents unauthorized use of the Atwell Suites name and system after the franchise agreement ends.
Furthermore, Holiday may reject a management company that is unwilling or unable to treat the terms of the License as superior over any conflicting terms in the agreement between the franchisee and the management company. This clause ensures that the franchise agreement takes precedence in case of any discrepancies, safeguarding Holiday's interests and control over the Atwell Suites brand. These conditions are determined by Holiday and will be included in the License agreement, so it is important for prospective franchisees to carefully review these terms.
It is important to note that even if Holiday approves a management company, the franchisee remains solely responsible for the selection, conduct, and performance of the management company, General Manager, and all staff members. Holiday assumes no responsibilities or liability in connection with the franchisee's selection or the conduct or performance of these parties. This highlights the franchisee's ultimate accountability for the hotel's operations and compliance with the Atwell Suites standards.