Under what condition is a client prohibited from assigning or transferring their Atwell Suites agreement?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
17. Assignment.
Client shall not assign or otherwise transfer this Agreement or any of its interest in this Agreement without the prior written consent of SCH. Except for the prohibition on assignment contained in the preceding sentence, this Agreement shall be binding upon and inure to the benefits of the heirs, successors and assigns of the parties hereto.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, a franchisee, referred to as 'Client' in this context, is prohibited from assigning or transferring their franchise agreement or any interest in it without obtaining prior written consent from SCH (Six Continents Hotels, Inc.).
This requirement means that if an Atwell Suites franchisee wishes to sell their franchise, transfer it to another party, or assign any portion of their rights or obligations under the agreement, they must first seek and receive written approval from Atwell Suites' parent company. This provision allows Atwell Suites to maintain control over who operates its franchised locations and ensures that any new operators meet the company's standards and qualifications.
This is a fairly standard clause in franchise agreements. It protects the franchisor's brand and ensures consistent quality and operational standards across all locations. A prospective Atwell Suites franchisee should be aware of this restriction and factor it into their long-term business plans, particularly if they anticipate wanting to exit the business or transfer ownership at some point.
It is important for potential franchisees to understand the process and criteria Atwell Suites uses to evaluate requests for assignment or transfer. Understanding these requirements upfront can help franchisees avoid potential issues or delays if they later decide to sell or transfer their Atwell Suites franchise.