Under what conditions can IHG immediately terminate the Participation Agreement with an Atwell Suites Participating Property?

According to the 2025 FDD, IHG (InterContinental Hotels Group) can immediately terminate the Participation Agreement with an Atwell Suites Participating Property if the Participating Owner breaches the confidentiality terms outlined in Section 6 of the agreement. This section pertains to the confidential information about the prices of goods and services negotiated by IHG with Supplier and other confidential information pertaining to this Participation Agreement.

The confidentiality terms mandate that the Participating Property must not use, disclose, share, or disseminate any information related to the Participation Agreement, including confidential price information, for any purpose other than strictly for the purpose of the Participation Agreement. The property can only disclose the price information to personnel who need access for the agreement's purpose and must keep the prices and all confidential information strictly confidential. The Participating Property is also prohibited from making copies of documentation related to the Participation Agreement, including price information, except as necessary for the agreement's purpose. Upon termination of the agreement, all documentation, including pricing information, must be returned to the Supplier and IHG, except for copies required for taxation or accounting records or as otherwise required by law. The Participating Property must also ensure that its affiliated companies comply with these confidentiality provisions.

If the Participating Property becomes aware of any breach of these confidentiality terms, it must immediately notify the Supplier (and IHG, where applicable) with all available details of the breach. The property must also take steps, at its own cost, as directed by the Supplier (or IHG) to minimize any loss resulting from the breach. This immediate termination clause underscores the importance IHG places on maintaining the confidentiality of its negotiated prices and other sensitive information related to the Participation Agreement. A prospective Atwell Suites franchisee should carefully review and understand these confidentiality obligations to avoid potential termination of the agreement.