Under what condition is Holiday required to provide a disclosure document approved by the Department of Corporations to an Atwell Suites franchisee in California?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
California Corporations Code, Section 31125, may require that we give you a disclosure document approved by the Department of Financial Protection and Innovation before we ask you to consider a material modification of your License Agreement.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, Holiday is required to provide a disclosure document approved by the Department of Financial Protection and Innovation to an Atwell Suites franchisee in California under specific circumstances.
Specifically, California Corporations Code, Section 31125, may require Holiday to provide a disclosure document approved by the Department of Financial Protection and Innovation before asking a franchisee to consider a material modification of their License Agreement. This requirement ensures that franchisees are fully informed and protected when significant changes to their franchise agreement are proposed.
This provision is designed to protect franchisees in California from being pressured into accepting modifications to their agreements without adequate information and time to consider the implications. It aligns with California's franchise laws, which aim to provide a fair and transparent franchising environment. A prospective franchisee should consult with a legal expert to fully understand their rights and obligations under California law.