Under what circumstances does IHG reserve the right to suspend services to an Atwell Suites hotel?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
, the period given to remedy defaults will, if and to the extent permitted by applicable law, thereafter be 10 days instead of 30 (provided, however, if there have been two or more violations of this License in the preceding twelve months for which notices of termination were given, upon the next violation, if and to the extent permitted by applicable law, this License may be terminated by IHG immediately upon notice).
- (3) In any judicial proceeding in which the validity of termination is at issue, IHG will not be limited to the reasons set forth in any notice sent under this paragraph.
- (4) If Licensee fails to cure its breach of its obligations timely and in the manner required by IHG, IHG may in its sole discretion suspend the Hotel from access to the Brand System. IHG may also in its sole discretion remove the Hotel's listing from any website services and divert reservations previously made for the Hotel to other Brand System Hotels or IHG Portfolio Brand Hotels. Licensee must pay all costs arising from suspension from the Brand System. IHG's election to suspend the Hotel from said access rather than terminate this License will not: (i) constitute a waiver of any breach by Licensee or of any rights IHG otherwise has to terminate this License; (ii) constitute actual or constructive termination of this License; (iii) constitute an abandonment by IHG of this License; or (iv) entitle Licensee to any compensation of any kind for any alleged losses Licensee might incur as a result of said suspension.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, IHG has the right to suspend services to an Atwell Suites hotel if the franchisee fails to cure its breach of obligations in a timely manner. In such cases, IHG can suspend the hotel's access to the Brand System, remove the hotel's listing from any website services, and redirect reservations to other hotels within the Brand System or IHG Portfolio Brand Hotels. The franchisee is responsible for covering all costs associated with this suspension.
It's important to note that IHG's decision to suspend services rather than terminate the license does not constitute a waiver of any breach by the franchisee, nor does it relinquish IHG's right to terminate the license. Suspension also does not entitle the franchisee to any compensation for potential losses incurred as a result of the suspension. Furthermore, a notice of suspension of services does not relieve the franchisee of their obligations under the license agreement.
Additionally, IHG reserves the right to suspend services if the Hotel violates any material term of the Participation Agreement with FreedomPay. This highlights the importance of adhering to all agreements and obligations to avoid potential disruptions in services and access to the Brand System. Prospective franchisees should carefully review all agreements and understand the potential consequences of breaching their obligations.
This clause protects IHG from damages caused by franchisees not meeting their contractual obligations. It also incentivizes franchisees to maintain brand standards and meet financial obligations to IHG and third-party service providers. The ability to suspend services provides IHG with a mechanism to enforce compliance without immediately resorting to termination, which can be a lengthy and costly process.