Under what conditions can the Atwell Suites agreement be immediately suspended or terminated?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
- 8.1 Termination for Cause. If Hotel defaults in the performance of any of its obligations under this Agreement and does not cure such default within twenty (20) days after receipt of a written notice of default from IHG, then IHG may terminate this Agreement, in whole or in part, as of the termination date specified in such written notice. If Hotel breaches the Hotel Agreement, and fails to cure such default within ten (10) days after receipt of a notice of default from IHG or an IHG Affiliate, then IHG may terminate this Agreement, in whole or in part, immediately upon written notice to Hotel as of the termination date specified in the notice, without any cure period.
- 8.3 Termination for Hotel Bankruptcy Event. IHG may terminate this Agreement, in whole or in part, immediately upon written notice to Hotel upon a Hotel Bankruptcy Event.
- 8.3 Termination or Expiration of IHG-HotelKey Agreement. If IHG's agreement with HotelKey relating to the PMS Solution terminates or expires, then IHG may, in its discretion, either (i) terminate this Agreement upon written notice to Hotel, or (ii) migrate Hotel to an alternative solution selected by IHG (the "Alternative Solution"). If IHG migrates Hotel to an Alternative Solution, IHG may amend this Agreement to incorporate any differing or additional terms required in connection with the Alternative Solution (the "Alternative Solution Terms"). IHG will provide Hotel with a copy of any such Alternative Solution Terms by written notice (the "Alternative Solution Notice"). If Hotel desires not to be migrated to such Alternative Solution, Hotel must provide IHG with written notice of its rejection of the Alternative Solution within thirty (30) days of the date of the Alternative Solution Notice. If Hotel fails to notify IHG of its rejection of the Alternative Solution within such thirty (30) day period, then Hotel will be deemed to have accepted the Alternative Solution and the Alternative Solution Terms.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, the franchise agreement can be terminated immediately under specific circumstances. If the franchisee breaches the Hotel Agreement and fails to rectify the default within ten days after receiving a notice of default from IHG or an IHG Affiliate, IHG has the right to terminate the agreement immediately. Additionally, if a Hotel Bankruptcy Event occurs, IHG can terminate the agreement with immediate written notice.
Furthermore, the agreement between IHG and HotelKey regarding the PMS (Property Management System) Solution also affects the Atwell Suites franchise agreement. If the IHG-HotelKey agreement terminates or expires, IHG has the discretion to either terminate the franchise agreement with written notice or migrate the hotel to an alternative solution. If the franchisee does not accept the alternative solution within thirty days of the Alternative Solution Notice, they will be considered to have accepted the alternative solution and its terms.
These termination conditions highlight the importance of adhering to the terms of both the franchise agreement and any related agreements, such as the Hotel Agreement and the IHG-HotelKey agreement. A prospective Atwell Suites franchisee should carefully review these termination clauses and understand the potential consequences of failing to meet the obligations outlined in the agreements. It is also important to note that certain states, such as California, provide rights to the licensee concerning termination or non-renewal of a license, and if the license contains a provision that is inconsistent with the law, the law will control.