Under the Atwell Suites license, is IHG permitted to use its Affiliates to fulfill its obligations?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
form, and if such communication is in digital, electronic or other computerized form, Licensee must pay any costs to retrieve, review, use or access same). IHG's designated internal franchise committee or subcommittee, must approve any such change and must determine, in the exercise of its business judgment, that the change was adopted in good faith and is consistent with the long-term overall interests of the Brand System.
6. Proprietary Rights:
A. Ownership of the Brand System.
Licensee acknowledges and agrees: (a) not to contest, either directly or indirectly, IHG's and its Affiliates' unrestricted and exclusive ownership of and right to use the Brand System and any element(s) or component(s) thereof; (b) that IHG or any of its Affiliates has the sole and exclusive right to grant licenses to use all or any element(s) or component(s) of the Brand System; and (c) that it will not take any action in derogation of such ownership and rights of IHG and any of its Affiliates. Licensee specifically agrees and acknowledges that IHG owns or is licensed to use the name and mark "Atwell Suites™" and all other Marks, as defined in paragraph 6.B. below, and other elements associated with the Brand System or derived therefrom (including but not limited to domain names or other identifications or elements used in electronic commerce), together with the goodwill symbolized thereby, and that Licensee will not contest, directly or indirectly, the validity or ownership of the Marks or take any other action in derogation of such validity or ownership either during the term of this License or after its termination. All improvements, modifications and additions whenever made to or associated with the Brand System by the parties hereto or anyone else, and all service marks, trademarks, copyrights, and service mark, trademark, domain name or similar registrations at any time used, applied for or granted in connection with the Brand System, and all goodwill arising from Licensee's use of IHG's Marks and other intellectual property, including (without limitation) local goodwill, shall inure to the benefit of and become the property of IHG.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, IHG (InterContinental Hotels Group) is permitted to utilize its Affiliates in fulfilling its obligations related to the franchise agreement. This is evidenced in several sections outlining the rights and responsibilities of both IHG and the franchisee. Specifically, the document mentions IHG's and its Affiliates' ownership and rights to the Brand System, the handling of trademark disputes, and the transfer of licensee personal data to IHG or its Affiliates.
This means that IHG can delegate certain tasks, responsibilities, or services outlined in the franchise agreement to its Affiliates. For a prospective Atwell Suites franchisee, this implies that they may interact with or receive services from entities other than IHG directly. These interactions could range from receiving support in marketing, reservations, or technology to handling financial transactions or legal matters.
The franchisee is obligated to pay amounts due to IHG and its Affiliates for royalties, charges, goods, or services. Additionally, Licensee Personal Data can be transferred to IHG or its Affiliates, provided it complies with Data Privacy Laws. IHG also has the right to require the franchisee to tender payments to IHG or one or more of IHG's Affiliates or other designees. This arrangement allows IHG to leverage its corporate structure and resources to support the Atwell Suites franchise system, potentially providing franchisees with access to a broader range of expertise and services. However, it also means that the franchisee must be prepared to work with multiple entities within the IHG network, adhering to the standards and requirements set forth by both IHG and its Affiliates.