Under what conditions can the Atwell Suites company remove dispensing equipment?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment Lessee may request the removal of any Equipment upon thirty (30) days prior written notice to Company, and in addition, Company may remove any piece of Equipment for any reason upon thirty (30) days prior written notice to Customer.
Removal of Equipment will not affect the term of any agreement between the parties.
If this Lease is terminated with respect to any piece of Equipment for any reason, other than Company removing a piece of Equipment without cause under this section, prior to 100 months from the Commencement Date for that piece of Equipment, Equipment Lessee will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation, (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment.
Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs." The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been removed from Equipment Lessee's premises and will survive the expiration or termination of any agreement into which this Lease is incorporated.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites' 2025 Franchise Disclosure Document, the company has the right to remove any piece of dispensing equipment from a franchisee's location for any reason. To do so, Atwell Suites must provide the franchisee with thirty days prior written notice.
If Atwell Suites removes the equipment without cause before 100 months from the installation date, the franchisee is not responsible for covering the removal costs. However, if the lease is terminated for any other reason before this 100-month period, the franchisee will be responsible for the actual cost of removal, including shipping and handling, as well as the remanufacturing of the equipment. The franchisee would also be responsible for the unamortized portion of the costs of installation, non-serialized parts like pumps and racks, and other ancillary equipment.
These potential costs are referred to as "unbundling costs." The terms of the dispensing equipment lease remain in effect until the equipment is removed from the franchisee's premises, even if any other agreements between Atwell Suites and the franchisee expire or are terminated. This means that even after the franchise agreement ends, the franchisee is still bound by the terms of the equipment lease until the equipment is physically removed.