Under what condition related to the IHG Agreement would an Atwell Suites franchisee NOT be entitled to Termination Assistance Services?

According to Atwell Suites' 2025 Franchise Disclosure Document, an Atwell Suites franchisee's entitlement to Termination Assistance Services is contingent upon the circumstances surrounding the termination of the IHG Agreement. Specifically, if the agreement between the Processor and Six Continents Hotels, Inc. ("IHG") is terminated by the company 'for cause,' the franchisee may not be entitled to Termination Assistance Services. In such instances, the company retains the discretion to decide whether or not to provide these services.

This condition introduces an element of uncertainty for prospective Atwell Suites franchisees. While the expiration or termination of the IHG Agreement generally allows the franchisee to terminate their agreement without penalty and receive Termination Assistance Services, this benefit is not guaranteed if the termination is due to a cause initiated by the company. The term 'for cause' is not defined in this section, which leaves room for interpretation and could potentially lead to disputes.

Prospective franchisees should seek clarification from Atwell Suites regarding what constitutes 'cause' for termination of the IHG Agreement. Understanding the specific reasons that could lead to a 'for cause' termination is crucial for assessing the risks associated with the franchise agreement. Franchisees should also inquire about the nature and extent of the Termination Assistance Services, to fully understand the potential benefits they might be foregoing in the event of a 'for cause' termination.