Under what conditions can IHG transfer or assign the Atwell Suites license?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee understands and acknowledges that the rights and duties set forth in this License are personal to Licensee, and that IHG has granted this License in reliance on the business skill, financial capacity, and personal character of Licensee (if Licensee is a natural person), and upon the owners, members, partners or stockholders of Licensee (if Licensee is an Entity). Accordingly, neither Licensee nor any immediate or remote successor to any part of Licensee's interest in this License, nor any Person which directly or indirectly owns an Equity Interest (as that term is defined below) in Licensee or this License, may sell, assign, transfer, convey, exchange, pledge, mortgage, encumber, lease or give away (each of the foregoing shall describe a "Transfer"), any direct or indirect interest in this License or Equity Interest in Licensee, except as expressly provided in this License. Any purported Transfer, by operation of law or otherwise, of any interest, collaterally or otherwise, in this License or any Equity Interest in Licensee not in accordance with the provisions of this License, shall be null and void and shall constitute
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites FDD, the rights and duties outlined in the license agreement are specific to the franchisee. IHG grants the license based on the franchisee's business skills, financial capacity, and personal character (if the franchisee is an individual) or the qualities of the owners, members, partners, or stockholders (if the franchisee is a business entity).
Therefore, neither the franchisee nor any successor to their interest in the license, nor any person owning an equity interest in the franchisee, can sell, assign, transfer, convey, exchange, pledge, mortgage, encumber, lease, or give away any direct or indirect interest in the license or equity interest in the franchisee, except as expressly provided in the license.
Any attempt to transfer any interest in the license or equity interest in the franchisee without following the provisions of the license will be considered null and void. Such an unauthorized transfer constitutes a material breach of the license agreement, which may allow IHG to terminate the license without providing an opportunity to cure the breach.