Under what condition might IHG's consent for an Atwell Suites hotel to relocate Equipment be conditioned?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall not locate or relocate any Equipment without IHG's prior written consent.
IHG's consent may be conditioned upon Hotel's execution of a waiver agreement pursuant to which, among other things, the entity controlling the new location shall have waived any rights to the Equipment and agreed to surrender the Equipment to IHG or HPFS upon an event of default.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 FDD, IHG's consent for an Atwell Suites hotel to relocate equipment is not guaranteed and may be subject to certain conditions. Specifically, IHG may require the hotel to execute a waiver agreement.
This waiver agreement would stipulate that the entity controlling the new location of the equipment relinquishes any rights to the equipment. Furthermore, the agreement would ensure that the equipment is surrendered to IHG or HPFS (presumably a financing entity) if an event of default occurs under the franchise agreement.
This condition protects IHG's and HPFS's interests in the equipment, ensuring they can recover it if the Atwell Suites franchisee fails to meet their obligations. Prospective franchisees should be aware of this requirement and understand the implications of relocating equipment, including the need to secure a waiver agreement that satisfies IHG's conditions.