What does 'Applicable Law' encompass within the Even Hotels agreement?

According to Even Hotels' 2025 Franchise Disclosure Document, 'applicable laws' generally refer to the statutes and regulations that a hotel must comply with. Specifically, the franchisee (referred to as 'Hotel' in this section) must comply with all laws applicable to the Hotel and the Next-Gen Payments Solution, including all applicable Privacy Laws. This obligation is outlined in section 11.1 of the miscellaneous provisions within the agreement.

Several amendments to the Even Hotels license agreement address how state laws interact with the standard agreement. For franchisees in California, the California Business and Professions Code Sections 20000 through 20043 provide rights concerning termination or non-renewal of a license, and these laws will take precedence if the license agreement contains inconsistent provisions. Similarly, for Even Hotels franchises in North Dakota, the laws of North Dakota supersede any conflicting provisions in the license or Georgia law. Washington franchisees benefit from the Washington Franchise Investment Protection Act, which takes precedence over inconsistent provisions in the franchise disclosure document or license agreement. Rhode Island law specifies that any provision designating governing law outside of Rhode Island is void. Hawaii law also provides rights to the licensee concerning termination or non-renewal of a license, taking precedence over any inconsistent license provisions.

These stipulations are important for prospective Even Hotels franchisees because they highlight that the franchise agreement is not uniformly applied across all states. Instead, state-specific laws can modify or even override certain provisions of the agreement. This ensures that franchisees are protected by the laws of their respective states, particularly concerning franchise termination, renewal, and dispute resolution. Franchisees should be aware of these state-specific amendments and understand how they impact their rights and obligations under the Even Hotels license agreement.