Upon expiration or termination of the Atwell Suites license, will any monetary amount be assigned to goodwill associated with the licensee's use of the Atwell Suites brand system?
Atwell_Suites Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration or termination of this License, no monetary amount shall be assigned as attributable to any goodwill associated with Licensee's use of the Brand System or any element(s) or component(s) of the Brand System including any trademarks or service marks licensed hereunder.
Source: Item 23 — Receipts (FDD pages 99–486)
What This Means (2025 FDD)
According to the 2025 Atwell Suites Franchise Disclosure Document, upon the expiration or termination of the license agreement, no monetary amount will be assigned to the franchisee for goodwill associated with their use of the Atwell Suites brand system. IHG owns the Atwell Suites brand system, including trademarks and associated goodwill.
This means that any goodwill developed during the franchise term, even if due to the franchisee's efforts, ultimately benefits IHG. The franchisee will not receive compensation for this goodwill upon exiting the system. This is a standard practice in franchising, as the brand's value and reputation are considered the property of the franchisor.
This clause emphasizes that Atwell Suites franchisees are essentially renting the brand's identity and operational system for a specific period. While franchisees benefit from the established brand and its recognition, they do not gain ownership of the brand equity itself. Therefore, franchisees should focus on maximizing their revenue and profitability during the franchise term, understanding that the goodwill they help create will revert to IHG upon termination or expiration of the agreement.