Under what conditions might Holiday require an Atwell Suites franchisee to hire a management company?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
d to operate the Hotel or unwilling or unable to: (1) comply with all requirements of Holiday under the License and the Standards, (2) cease operating the Hotel as a Holiday licensed Hotel once the License terminates, (3) treat the terms of the License as superior over any conflicting terms in the agreement between you and your management company.
Holiday may determine that you are not qualified to operate the Hotel, and if so, Holiday will require you to retain a management company to operate the Hotel. Normally, Holiday does not require that you
engage it or one of its affiliates as the management company in order to obtain a License. Occasionally, because of the distribution of company managed hotels in a particular geographic area, or other factors, Holiday may determine that the development or conversion of a new Hotel is appropriate only if one of its affiliates manages the Hotel. In that case, Holiday may condition the granting of a License on one of its affiliates managing the Hotel.
Holiday requires that you enter a Revenue Management for Hire and IHG Voice Reservation Services agreement with Holiday's affiliate SCH (see Item 6, Notes 6 and 21 and Exhibits G-1 and G-2 to this disclosure document).
If you hire a management company, General Manager, Director of Sales, and/or F&B Director or Regional Director of Operations to operate the Hotel for you, whether or not Holiday required you to hire these positions, you and any of your guarantors remain liable to Holiday, SCH and their affiliates under the terms of the License, including, without limitation, the Master Technology Services Schedule, and any Guaranty.
Holiday does not impose restrictions, nor does it require you to impose restrictions, on any of your employees. However, Holiday and you agree to comply with each other's reasonable requirements concerning confidentiality of information. In particular, you may not disclose, without Holiday's written permission, information pertaining to Holiday's marketing and reservation programs that have not been disclosed to the public.
Even though any management company must be acceptable to Holiday, you remain solely responsible for the selection, conduct and performance of any required management company, General Manager and all staff members and employees and Holiday has no responsibilities or liability in connection with your selection and its, his or her conduct or performance.
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 90–92)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, Holiday, the franchisor, may require a franchisee to retain a management company to operate the hotel if Holiday determines that the franchisee is not qualified to operate the hotel themselves. This determination is at Holiday's discretion.
Additionally, Holiday may include conditions in the License Agreement requiring the franchisee to hire a management company acceptable to Holiday, or a General Manager and/or Director of Sales with at least two years of prior experience in a similar hotel brand segment. If a General Manager and/or a Director of Sales are required by Holiday, such individuals must work exclusively for the Atwell Suites hotel, and if the franchisee owns more than one hotel, a separate, qualified General Manager must be hired for each hotel.
If Holiday requires the franchisee to hire a management company, General Manager, and/or Director of Sales, it may stipulate a specific timeframe for hiring these positions, either after signing the License or before the hotel opens. The specific conditions will be outlined in the License Agreement. Holiday retains the right to reject a proposed management company if it deems the company inexperienced, unqualified, or unwilling to comply with Holiday's requirements under the License and Standards. Even if a management company is hired, the franchisee remains responsible for the selection, conduct, and performance of the management company, General Manager, and all staff members.