Are certain fees assessed from Even Hotels franchisees remitted to the Group Owner?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Remitting Fees to Group Owner. Depending on our and your relationship with the Group Owner, certain fees that are assessed and collected pursuant to the Agreement may be assessed and collected on behalf of the Group Owner and remitted to the Group Owner.
You authorize us to assess, collect, and remit to the Group Owner such fees.
- (f) Waiver of Liability. We are not responsible for determining whether you are a Group Member.
We shall not have any liability to you in connection with any of our acts and omissions under this Section 2.6, regardless of whether you are or are not a Group Member.
You waive all claims, suits, and causes of action against us, and all related losses, related to our acts and omissions under this Section 2.6.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, certain fees collected from franchisees may be remitted to the Group Owner, depending on the relationship between Even Hotels, the franchisee, and the Group Owner. The franchisee consents to Even Hotels providing services in accordance with the Group Owner's instructions and waives any claims against Even Hotels arising from following those instructions.
This means that Even Hotels franchisees may be required to pay fees that are then passed on to the Group Owner. The FDD specifies that the franchisee authorizes Even Hotels to assess, collect, and remit these fees. However, Even Hotels is not responsible for determining whether a franchisee is a Group Member and has no liability to the franchisee regarding these actions, regardless of the franchisee's Group Member status.
The franchisee also waives all claims against Even Hotels related to these acts and omissions. This arrangement highlights the importance of understanding the relationship between Even Hotels, the Group Owner, and the franchisee, as well as the potential financial obligations and liabilities involved. Prospective franchisees should carefully review the terms of the franchise agreement and any related agreements with the Group Owner to fully understand their obligations and rights.
This arrangement is not uncommon in franchising, where franchisors may have relationships with parent companies or other affiliated entities that influence fee structures and revenue distribution. However, the specific details of these arrangements can vary significantly, so it is crucial for prospective franchisees to conduct thorough due diligence and seek legal counsel to ensure they fully understand the implications of these relationships.