Under the Atwell Suites license, may future investments be required of the licensee?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand System is designed to provide a distinctive, high quality hotel service to the public under the name Atwell Suites™. High standards established by IHG are the essence of the Brand System. Future investments may be required of Licensee under this License. Licensee desires to enter into this License in order to obtain a license to use the Brand System in the operation of a hotel located at the "Location" identified on Attachment "A" and defined in paragraph 2.A. below (the "Hotel").
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, future investments may be required of the licensee under the terms of the license agreement. This means that during the term of the franchise agreement, Atwell Suites may require franchisees to make additional investments in their business. These investments could be related to upgrades, renovations, or changes to the brand standards.
It is important for prospective franchisees to understand that these future investments are a possibility and to factor them into their financial planning. The specific types of investments that may be required and the amounts are not detailed in this section. Franchisees should inquire about the nature, scope, and potential financial impact of these future investment requirements.
While the FDD mentions the possibility of future investments, it does not provide specific details on what these investments might entail. Therefore, it is crucial for potential Atwell Suites franchisees to discuss this matter with the franchisor to gain a clearer understanding of the potential financial obligations beyond the initial investment.