Does Even Hotels allow a franchisee to use a card for any purpose other than a bona fide transaction?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) each Card transaction represents an obligation of the related Cardholder for the amount of the Card transaction;
(c) the amount charged for each Card transaction is not subject to any dispute, set-off or counterclaim;
(d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivere
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are restricted in their use of card transaction services. Specifically, Even Hotels franchisees may only use these services for legitimate business purposes related to the sale, lease, or rental of merchandise or services offered through their business, as indicated in their application. This includes taxes but excludes surcharges unless mandated by Card Organization Rules.
This restriction means that Even Hotels franchisees cannot use the card processing services for personal, household, or non-commercial purposes. Additionally, the amount charged in each card transaction must accurately reflect the goods or services provided and cannot be subject to disputes, set-offs, or counterclaims. The FDD also specifies that the card transaction represents an obligation of the cardholder for the transaction amount.
These stipulations are designed to ensure the integrity of financial transactions and compliance with Card Organization Rules. For a prospective Even Hotels franchisee, this means maintaining meticulous records and ensuring all card transactions are directly tied to legitimate business activities. Failure to adhere to these rules could result in penalties, loss of service, or legal repercussions.