What authorization is required for Even Hotels to use the ACH settlement process?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
To the extent the Automated Clearing House ("ACH") settlement process is used to effect debits or credits to your Settlement Account, you agree to be bound by the terms of the operating rules of the National Automated Clearing House Association, as in effect from time to time.
You hereby authorize us to initiate credit and debit entries and adjustments to your Settlement Account through the ACH network and/or through direct instructions to the financial institution where your Settlement Account is maintained for amounts due under the Agreement (including any amounts due under this Section 6) and under any agreements with us or our respective Affiliates for any product or services, as well as for any credit entries in error.
You hereby authorize the financial institution where your Settlement Account is maintained to effect all such debits and credits to your account.
The ACH authorization under this Section 6.3 will remain in effect until (a) you have provided us at least 30 days' prior written notice in accordance with Section 19.3 that you are terminating the authorization, and (b) either (i) all amounts due from you under the Agreement and under any other agreements you have with us or our Affiliates have been paid in full, or (ii) you have provided us an authorization to debit via ACH a replacement Settlement Account that is satisfactory to us in our sole discretion.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, to use the Automated Clearing House (ACH) settlement process, a franchisee must authorize Even Hotels to initiate credit and debit entries to their settlement account. This authorization extends to adjustments made through the ACH network or via direct instructions to the financial institution where the franchisee's settlement account is held. These transactions cover amounts due under the franchise agreement, including fees for products or services from Even Hotels or its affiliates, as well as corrections for any credit entries made in error. The franchisee also authorizes their financial institution to process these debits and credits.
This ACH authorization remains effective until the franchisee provides at least 30 days' prior written notice of termination, and either all outstanding amounts are paid in full or a replacement settlement account acceptable to Even Hotels is provided. This means that Even Hotels has the right to continue using the ACH authorization until all financial obligations are met or an alternative, approved account is provided.
For a prospective Even Hotels franchisee, this requirement means they must agree to allow Even Hotels to directly debit and credit their bank account for various fees and payments related to the franchise. This simplifies payment processing but also requires careful monitoring of account activity to ensure accuracy and address any discrepancies promptly. The franchisee should also be aware of the conditions required to terminate the ACH authorization to avoid any unintended or prolonged debits.