Does AT&T accept payment from Even Hotels' Affiliates?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
At Eligible Participant's request, but subject to AT&T's consent (which may not be unreasonably withheld or withdrawn), Eligible Participant's Affiliates may be invoiced separately, and AT&T will accept payment from such Affiliates.
Eligible Participant will be responsible for payment if Eligible Participant's Affiliates do not pay charges in accordance with this Agreement.
AT&T may require Eligible Participant or its Affiliates to tender a deposit if AT&T determines, in its reasonable judgment, that Eligible Participant or its Affiliates are not creditworthy, and AT&T may apply such deposit to any charges owed.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, AT&T may accept payments from an Even Hotels Eligible Participant's Affiliates under certain conditions. Specifically, at the Eligible Participant's request, AT&T may invoice the Affiliate separately and accept payment from them, but this is subject to AT&T's consent, which AT&T will not unreasonably withhold. However, the Eligible Participant (the Even Hotels franchisee) remains responsible for payment if their Affiliate fails to pay the charges as agreed. AT&T retains the right to require a deposit from either the Eligible Participant or its Affiliates if it determines they are not creditworthy, and this deposit can be applied to any outstanding charges.
This arrangement provides some flexibility for Even Hotels franchisees who may have multiple entities involved in their business operations. By allowing Affiliates to be invoiced separately, it could simplify accounting and payment processes within the franchisee's organization. However, it's crucial for franchisees to understand that they ultimately bear the responsibility for ensuring all AT&T charges are paid, regardless of whether the Affiliate remits payment or not. This condition underscores the importance of carefully managing relationships with Affiliates and ensuring they are financially capable of meeting their obligations.
The FDD also states that the Eligible Participant will pay AT&T without deduction, setoff, or delay for any reason, except for withholding taxes as provided in Section 4.2 - Additional Charges and Taxes or in Section 4.5 - Delayed Billing; Disputed Charges. Payment is due within 30 days after the date of the invoice and must refer to the invoice number.
Overall, while AT&T offers some accommodation for separate invoicing and payment from Affiliates, the Even Hotels franchisee should be aware of the conditions and potential risks involved. Maintaining open communication with AT&T and ensuring the financial stability of any Affiliates involved in payment processes are essential for a smooth business relationship.