Under what circumstances related to assignment or transfer of the Atwell Suites agreement can Atwell Suites void the transfer, assignment, or sublicense?

According to the 2025 Atwell Suites Franchise Disclosure Document, Atwell Suites has the right to void a transfer, assignment, or sublicense of the agreement under specific conditions. If a franchisee transfers or assigns the agreement, or any portion of it, or attempts to sublicense or otherwise transfer any licensed rights, whether by operation of law or otherwise, without obtaining Atwell Suites' prior written consent, Atwell Suites reserves the right to void such transfer, assignment, and/or sublicense.

This provision protects Atwell Suites' interests by ensuring that the franchisee does not transfer their rights and obligations to a third party without the franchisor's knowledge and approval. This is a common practice in franchising, as the franchisor needs to ensure that any new operator meets their standards and is capable of running the franchise successfully. Without this control, the brand's reputation and the performance of the franchise location could be negatively impacted.

Furthermore, if Atwell Suites voids the transfer, assignment, or sublicense due to the franchisee's actions without prior written consent, Atwell Suites also has the right to suspend services, declare an Event of Default, and exercise any of their other rights under the agreement. This could lead to significant consequences for the franchisee, including potential termination of the franchise agreement and loss of their investment. Therefore, it is crucial for franchisees to seek and obtain written consent from Atwell Suites before attempting any transfer, assignment, or sublicense of the agreement.