For Even Hotels, what is the condition that determines whether the 'Term Effective Date' is January 1, 2020?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will become effective when signed by an authorized representative of each of Company and Customer (the "Agreement Effective Date"). The "Term Effective Date" will be January 1, 2020, provided this Agreement is signed on or before September 30, 2020; or (ii) if this Agreement is signed after September 30, 2020, the Term Effective Date will be the first day of the month in which this Agreement is signed by Customer. The term of the Agreement will continue from the Term Effective Date until the expiration or earlier termination of the beverage marketing agreement between Company and Six Continents Hotels, Inc. dated January 1, 2020 (the "Term").
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the 'Term Effective Date' is influenced by when the agreement is signed. Specifically, if the agreement is signed on or before September 30, 2020, the 'Term Effective Date' will be January 1, 2020. However, if the agreement is signed after September 30, 2020, the 'Term Effective Date' shifts to the first day of the month in which the agreement is signed by the customer.
This distinction is important for prospective Even Hotels franchisees because it determines the start date of their franchise agreement term. Knowing the 'Term Effective Date' is crucial for understanding the duration of the agreement and planning business operations accordingly.
Furthermore, the agreement's term continues until the expiration or earlier termination of the beverage marketing agreement between the company and Six Continents Hotels, Inc., dated January 1, 2020. This means the length of the franchise agreement is tied to an external agreement, which introduces a degree of uncertainty for the franchisee. It would be prudent for a potential franchisee to inquire about the status and expected duration of this beverage marketing agreement to better assess the potential term of their franchise agreement with Even Hotels.