Under what circumstances is an Atwell Suites licensee required to reimburse IHG for expenses?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee agrees to pay IHG all expenses, including reasonable attorneys' fees and court costs, incurred by IHG, its Affiliates, 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 counterclaim brought by Licensee), 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, a licensee is required to reimburse IHG (InterContinental Hotels Group) for specific expenses under certain circumstances.
Specifically, the Atwell Suites franchisee must cover all expenses incurred by IHG, its affiliates, and their successors and assigns when IHG needs to take action to remedy any defaults by the franchisee, enforce its rights under the license agreement, defend itself against claims (including claims initiated by the franchisee), terminate the license agreement, or collect any amounts due to IHG. These expenses include reasonable attorneys' fees and court costs.
This means that if an Atwell Suites franchisee breaches the franchise agreement, initiates a legal claim against IHG that is unsuccessful, or fails to pay required fees, they will be responsible for covering IHG's associated legal and administrative costs. This provision is common in franchise agreements to protect the franchisor's interests and ensure compliance with the terms of the agreement.