For Even Hotels, what is the 'Agreement Effective Date' defined as?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will become effective when signed by an authorized representative of each of Company and Customer (the "Agreement Effective Date"). The "Term Effective Date" will be January 1, 2020, provided this Agreement is signed on or before September 30, 2020; or (ii) if this Agreement is signed after September 30, 2020, the Term Effective Date will be the first day of the month in which this Agreement is signed by Customer. The term of the Agreement will continue from the Term Effective Date until the expiration or earlier termination of the beverage marketing agreement between Company and Six Continents Hotels, Inc. dated January 1, 2020 (the "Term").
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Agreement Effective Date is defined as the date when the franchise agreement is signed by an authorized representative of both the Company (the franchisor) and the Customer (the franchisee). This date marks the point at which the agreement becomes legally binding.
In practical terms, this means that all obligations and rights outlined in the franchise agreement come into effect from this date forward. It is important for prospective Even Hotels franchisees to understand this date, as it triggers various timelines and responsibilities detailed in the agreement.
Furthermore, the FDD also mentions a "Term Effective Date," which is distinct from the "Agreement Effective Date." The Term Effective Date is specified as either January 1, 2020, if the agreement is signed on or before September 30, 2020, or the first day of the month in which the agreement is signed if it's signed after September 30, 2020. The term of the agreement continues from the Term Effective Date until the expiration or earlier termination of the beverage marketing agreement between the Company and Six Continents Hotels, Inc., dated January 1, 2020. This distinction is crucial for understanding the overall duration and specific periods covered by the franchise agreement.