Under the Atwell Suites Participation Agreement, what is the limit of IHG's liability for direct services?

According to Atwell Suites' 2025 Franchise Disclosure Document, IHG's liability relating to the Participation Agreement and direct services is limited to the actual amount the hotel paid to IHG for the services that caused the damages during the prior six months. This means that if an Atwell Suites franchisee experiences damages due to IHG's direct services, the maximum compensation they can receive from IHG is capped at the amount they paid for those specific services over the preceding six months.

This limitation does not cover incidental, indirect, exemplary, punitive, or consequential damages. It also excludes any liability for lost data, lost business, lost revenue, opportunity costs, or damage to reputation or goodwill. The limitation applies regardless of whether the damages arise from a contract, tort (including negligence), or any other legal theory.

The sole and exclusive remedy for any defect in the system or failure to perform services under the Participation Agreement is a credit for service payments due. This means that instead of receiving monetary compensation, the Atwell Suites franchisee may only be entitled to a credit towards future service payments. This arrangement is common in franchise agreements, where franchisors often limit their liability to protect themselves from large, unforeseen claims, and it is important for prospective franchisees to understand these limitations before entering into an agreement.