What amounts are included when an Even Hotels franchisee must reimburse the franchisor for chargebacks?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
7 Chargebacks
7.1 Chargebacks Generally. You must reimburse us for all transactions you submit that are charged back and all related amounts, including: (a) all Chargebacks; (b) all fees, fines, penalties, assessments, and other amounts related to disputing or arbitrating a Chargeback or failing to produce records within applicable time limits; and (c) all Chargeback Fees set forth on the Fee Schedule or elsewhere in the Agreement, regardless of whether a Chargeback is settled in your favor or the Cardholder's favor.
7.2 Disputing Chargebacks. You may dispute a Chargeback as provided in the Card Organization Rules, including any requirements for timely submission.
Our obligation to you respecting Chargeback disputes is limited to presenting your dispute to the appropriate Card Organization, to the limited extent required by Card Organization Rules.
We will not engage in direct collection efforts against Cardholders on your behalf.
The Your Payments Acceptance Guide contains additional details and requirements related to Chargebacks.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are required to reimburse the company for chargebacks. This reimbursement includes (a) all chargebacks, which are transaction reversals; (b) all associated fees, fines, penalties, assessments, and other amounts related to disputing or arbitrating the chargeback, or for failing to provide records within the required time limits; and (c) all chargeback fees as outlined in the fee schedule or elsewhere in the agreement.
This means that if a customer disputes a charge at an Even Hotels location and the charge is reversed (resulting in a chargeback), the franchisee is responsible for covering the reversed amount. Additionally, the franchisee must pay any costs incurred by Even Hotels in the process of disputing the chargeback, even if the dispute is not resolved in the franchisee's favor. These costs can include fees, fines, and penalties.
It is important for prospective Even Hotels franchisees to understand that chargebacks can arise from various situations, such as customer dissatisfaction, fraud, or errors in processing transactions. Franchisees should implement robust procedures for handling transactions and resolving customer disputes to minimize the risk of chargebacks. Furthermore, franchisees should familiarize themselves with the fee schedule and other agreement terms to fully understand the potential costs associated with chargebacks.