factual

Does an Even Hotels client have an exclusive right to receive services from SCH?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

SCH is an independent contractor and neither SCH nor SCH's staff is or shall be deemed to be employed by Client. Client is hereby contracting with SCH for the Services described on above in Section 1 and SCH reserves the right to determine the method, manner and means by which the Services will be performed. The Services shall be performed by SCH or SCH's staff, and Client shall not be required to hire, supervise or pay any assistants to help SCH perform the Services under this agreement.

SCH shall not be required to devote SCH's full time nor the full time of SCH's staff to the performance of the Services required hereunder, and it is acknowledged that SCH has other Clients within the SCH family of brands. The order or sequence in which the Services are to be performed shall be under the sole control of SCH. Except to the extent that SCH's Services must be performed on or with Client's computers or Client's existing software, and except to the extent specified in Exhibit A, all materials used in providing the Services shall be provided by SCH.

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, an Even Hotels client does not have an exclusive right to receive services from SCH. The FDD specifies that SCH is an independent contractor and that SCH has other clients within the SCH family of brands. This means that Even Hotels franchisees will be sharing SCH's services with other businesses.

This arrangement allows SCH to offer its services to multiple clients, potentially reducing costs through economies of scale. However, it also means that the attention and resources SCH dedicates to an individual Even Hotels location may be less than if the relationship were exclusive. The FDD states that SCH is not required to devote its full time or the full time of its staff to performing services for the client.

Prospective Even Hotels franchisees should consider the implications of this non-exclusive arrangement. While SCH must staff the Department during normal business hours, the level of dedicated support may vary. Franchisees should inquire about the typical workload and client-to-staff ratio at SCH to gauge the potential level of service they can expect. Understanding how SCH prioritizes its clients and manages its resources will be crucial for franchisees to effectively utilize the services provided and maximize their hotel's revenue potential.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.