When do changes to Third Party Based Fees become effective for Even Hotels franchisees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Client will pay Processor all fees, fines, assessments, penalties, obligations, liabilities, adjustments, and other charges and amounts a Card Organization, Issuer, or other Third Party imposes, establishes, or sets that are related to Client's transactions, and all related costs and expenses ("Third Party Based Fees"). Card Organizations and other Third Parties may modify their Third Party Based Fees during the Term of the Agreement. Modifications to Third Party Based Fees will be effective on the dates set by the Card Organizations or other third parties.
Third Party Based Fees are in addition to the Servicers Fees and include, without limitation, the following:
Interchange (including any amounts associated with downgraded transactions)
Chargebacks (you are responsible for all transactions, or portions of transactions, that are charged back and all related amounts)
Excessive Chargebacks
Dues and Assessments
Access Fees
Debit Network Fees
Card Organization Pass Through Fees
Other Fees and Amounts (including Data Compromise Losses and other amounts arising from a Compromised Data Event)
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, changes to Third Party Based Fees become effective on the dates set by the Card Organizations or other third parties. These fees encompass a wide range of charges and amounts imposed by Card Organizations, Issuers, or other Third Parties related to a client's transactions, including all associated costs and expenses.
These Third Party Based Fees are in addition to the Servicers Fees. Examples of Third Party Based Fees include interchange fees (including amounts associated with downgraded transactions), chargebacks (where the franchisee is responsible for all transactions or portions of transactions that are charged back and all related amounts), excessive chargebacks, dues and assessments, access fees, debit network fees, card organization pass-through fees, and other fees and amounts, including data compromise losses and other amounts arising from a Compromised Data Event.
As a franchisee, it is important to stay informed about potential changes to these fees, as they can impact the overall cost of processing transactions. Franchisees should maintain open communication with the relevant Card Organizations and Third Parties to remain aware of any upcoming modifications to the fee structure. This proactive approach will enable franchisees to adjust their financial planning and operational strategies accordingly.