Under what conditions is Atwell Suites not obligated to settle a card transaction with a franchisee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
8.1 Your Representations and Warranties. Without limiting any other warranties hereunder, you represent, warrant to, and covenant with us, and with the submission of each Sales Draft reaffirm that:
(a) each Card transaction is genuine and arises from a bona fide transaction permissible under the Card Organization Rules by the Cardholder directly with you, represents a valid obligation for the amount shown on the Sales Draft, preauthorized order, or Credit Draft, and does not involve the use of a Card for any other purpose;
(b) each Card transaction represents an obligation of the related Cardholder for the amount of the Card transaction;
(c) the amount charged for each Card transaction is not subject to any dispute, set-off or counterclaim;
(d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivered to or performed for the Cardholder entering into that Card transaction simultaneously upon your accepting and submitting that Card transaction for processing;
(e) with respect to each Card transaction, you have no knowledge or notice of any fact, circumstance, or defense which would indicate that such Card transaction is fraudulent or not authorized by the related Cardholder or which would otherwise impair the validity or collectability of that Cardholder's obligation arising from that Card transaction or relieve that Cardholder from liability with respect thereto;
(f) each Card transaction is made in accordance with these Terms and Conditions, Card Organization Rules, the Your Payments Acceptance Guide, and Applicable Law;
(g) each Sales Draft is free of any alteration not authorized by the related Cardholder;
(h) you have completed one Card transaction per sale;
(i) you are validly existing, in good standing, and free to enter into the Agreement;
(j) each statement made on the Application or other information provided to us in support of the Agreement is true and correct;
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, Atwell Suites requires franchisees to make certain representations and warranties regarding card transactions. Atwell Suites is not obligated to settle a card transaction with a franchisee if the franchisee breaches any of these representations and warranties.
Specifically, Atwell Suites franchisees must warrant that each card transaction is genuine, arises from a legitimate transaction between the cardholder and the franchisee, and represents a valid obligation for the amount shown. The franchisee must also warrant that the amount charged is not subject to any dispute, set-off, or counterclaim and is only for merchandise or services already delivered, excluding specifically authorized delayed delivery or advance deposit transactions.
Furthermore, the Atwell Suites franchisee must confirm they have no knowledge of any fact or circumstance indicating the transaction is fraudulent or unauthorized, which might impair the validity or collectability of the cardholder's obligation. The franchisee must also warrant that each transaction complies with all applicable terms, conditions, card organization rules, and laws, and that all information provided to support the agreement is true and correct. These stipulations protect Atwell Suites from financial losses and legal issues arising from improper or fraudulent card transactions processed by its franchisees.