In California, which department is the Commissioner of for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT B-2
Amendment To The Holiday Hospitality Franchising, LLC Even Hotels License Agreement Pursuant To The California Department of Financial Protection and Business Oversight
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Even Hotel issued in the State of California:
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- In accordance with the provisions under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the US Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- California Business and Professions Code Sections 20000 through 20043 provide rights to the Licensee concerning termination or non-renewal of a License. If the License contains a provision that is inconsistent with the law, the law will control.
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- The License contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable,
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- The License and Guaranty require application of the laws of Georgia. In accordance with 5050.23 Sec. 310.114.1(c)(5)(B)(v), this provision may not be enforceable under California law.
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- With respect to franchises sold in California, a franchisor is prohibited from modifying a franchise agreement, or requiring a general release, in exchange for any assistance related to a declared state or federal emergency.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, the amendment to the franchise agreement for Even Hotels in California is pursuant to the California Department of Financial Protection and Business Oversight. This means that the terms of the franchise agreement are subject to oversight and potential modification based on the regulations and requirements of this specific California department. Prospective franchisees in California should be aware that this department plays a role in ensuring compliance and protecting franchisees' rights within the state.
This amendment addresses several key legal considerations specific to California. These include the enforceability of provisions under the U.S. Bankruptcy Code, franchisees' rights concerning termination or non-renewal as per California Business and Professions Code Sections 20000 through 20043, and the enforceability of liquidated damages clauses under California Civil Code Section 1671. Additionally, the amendment notes that the franchise agreement's requirement for applying Georgia laws may not be enforceable under California law, as per 5050.23 Sec. 310.114.1(c)(5)(B)(v).
Furthermore, the amendment prohibits Even Hotels from modifying a franchise agreement or requiring a general release in exchange for assistance related to a declared state or federal emergency. This provision aims to protect franchisees during times of crisis. The document also clarifies that the amendment can be executed in counterparts, with electronic signatures having the same force as originals, which reflects modern business practices. These stipulations collectively ensure that the Even Hotels franchise agreement adheres to California-specific legal standards and provides certain protections to franchisees operating in the state.