Under what conditions can Atwell Suites terminate the ACH authorization?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The ACH authorization under this Section 6.3 will remain in effect until (a) you have provided us at least 30 days' prior written notice in accordance with Section 19.3 that you are terminating the authorization, and (b) either (i) all amounts due from you under the Agreement and under any other agreements you have with us or our Affiliates have been paid in full, or (ii) you have provided us an authorization to debit via ACH a replacement Settlement Account that is satisfactory to us in our sole discretion.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to Atwell Suites's 2025 Franchise Disclosure Document, the ACH authorization will remain in effect until certain conditions are met. Specifically, the franchisee must provide Atwell Suites with at least 30 days' prior written notice of termination, as outlined in Section 19.3 of the agreement.
Even with this written notice, the ACH authorization will continue unless one of two conditions is satisfied. First, all amounts due from the franchisee under the License Agreement and any other agreements with Atwell Suites or its affiliates must be paid in full. Alternatively, the franchisee can provide Atwell Suites with an authorization to debit a replacement settlement account, but this replacement account must be satisfactory to Atwell Suites, according to their sole discretion.
In practical terms, this means that an Atwell Suites franchisee cannot simply stop the ACH payments without providing written notice and ensuring all outstanding debts are settled. Atwell Suites retains significant control over the payment process, as they have the final say on whether a replacement settlement account is acceptable. This clause protects Atwell Suites by ensuring they receive all due payments and have a reliable method for collecting funds throughout the duration of the franchise agreement.