Under what circumstances can Atwell Suites terminate the Equipment Lease?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- DEFAULT.
The occurrence of any of the following will constitute a "Default" by Equipment Lessee: (a) nonpayment by Equipment Lessee when due of any amount due and payable under this Lease; (b) failure of Equipment Lessee to comply with any provision of this Lease, and failure of Equipment Lessee to remedy, cure, or remove such failure within twenty (20) days after receipt of written notice thereof from Company; (c) any statement, representation, or warranty of Equipment Lessee to Company in this Lease that is untrue as of the date made; (d) Equipment Lessee's becoming insolvent or unable to pay its debts as they mature, or Equipment Lessee making an assignment for the benefit of creditors, or any proceeding, whether voluntary or involuntary, being instituted by or against Equipment Lessee alleging that Equipment Lessee is insolvent or unable to pay its debts as they mature; (e) appointment of a receiver, liquidator, trustee, custodian or other similar official for any of the Equipment, trustee, custodian or other similar official for any of the Equipment or for any property in which Equipment Lessee has an interest; (f) seizure of any of the Equipment; (g) default by Equipment Lessee under the terms of any note, document, agreement or instrument evidencing an obligation of Equipment Lessee to Company or to any affiliate of The Coca-Cola Company, whether now existing or hereafter arising; or (h) Equipment Lessee taking any action with respect to the liquidation, dissolution, winding up or otherwise discontinuing the conduct of its business.
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- REMEDIES. Upon the occurrence of any Default or at any time thereafter during the continuance thereof, Company may terminate this Lease as to any or all items of Equipment, may enter Equipment Lessee's premises and retake possession of the Equipment at Equipment Lessee's expense, and will have all other remedies at law or in equity for breach of the Lease.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, the company can terminate the equipment lease if the Equipment Lessee (the franchisee) is in default. A default occurs under several circumstances. These include nonpayment of amounts due under the lease, failure to comply with any provision of the lease that is not remedied within 20 days of written notice, or any untrue statement made by the Equipment Lessee in the lease.
Additional default conditions include the Equipment Lessee becoming insolvent, making an assignment for the benefit of creditors, or facing insolvency proceedings. The appointment of a receiver, liquidator, trustee, or similar official for the equipment or any property in which the Equipment Lessee has an interest also constitutes a default. Seizure of any of the equipment or default by the Equipment Lessee under any obligation to Atwell Suites or its affiliates can also trigger termination.
Finally, if the Equipment Lessee takes any action to liquidate, dissolve, wind up, or discontinue its business, Atwell Suites has grounds to terminate the equipment lease. Upon any of these default events, Atwell Suites may terminate the lease for any or all equipment, enter the franchisee's premises to repossess the equipment at the franchisee's expense, and pursue any other legal or equitable remedies for breach of the lease.