Under what circumstances can IHG withhold consent for an Atwell Suites license, regardless of other reasons?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) IHG's consent, whenever required, may be withheld if any breach by Licensee exists under this License, without regard for any other basis for withholding such consent. Approvals and consents by IHG will not be effective unless evidenced by a writing duly executed on behalf of IHG.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, IHG (InterContinental Hotels Group) has the right to withhold consent if the franchisee is in breach of the license agreement. This means that even if there are other reasons why IHG might or might not grant consent, any existing breach by the franchisee is sufficient justification for IHG to withhold its approval.
This provision gives IHG significant power, as any violation of the franchise agreement, no matter how small, could be used as a basis for denying consent. It is important to note that any approvals or consents from IHG must be documented in writing and duly executed on behalf of IHG to be considered valid.
For a prospective Atwell Suites franchisee, this highlights the importance of strictly adhering to all terms and conditions of the license agreement. Failure to do so could result in IHG withholding necessary consents, which could impede the franchisee's ability to operate or make changes to their business. Franchisees should ensure they fully understand their obligations under the license agreement and maintain open communication with IHG to address any potential issues promptly.
It is also important for potential franchisees to understand that they cannot claim monetary damages if IHG withholds, delays, or denies consent. The franchisee's sole remedy is to take legal action to enforce the license agreement or seek a declaratory judgment.