Under what circumstances can IHG withhold consent from an Atwell Suites licensee, 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 can withhold consent if the licensee 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 to deny a franchisee's request. The franchisee does not have recourse to claim damages based on the withholding of consent. The franchisee's sole remedy is to take action to enforce the license agreement or seek a declaratory judgment.
This clause highlights the importance of strict compliance with all terms of the Atwell Suites license agreement. A prospective franchisee should carefully review the agreement to understand what constitutes a breach and what steps can be taken to remedy any potential violations. It is also advisable to seek legal counsel to fully understand the implications of this provision.