What is the construction completion deadline for a new development Even Hotels location from the date of commencement of construction?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
At least 120 days prior to ground break, you must submit final plans, specifications and drawings for the Hotel, including its proposed equipment, furnishings, facilities and signs, with the detail and containing the information that Holiday requests, and to commence construction. Unless Holiday grants your request for an extension to your construction completion deadline, you must complete construction and furnishing and obtain Holiday's authorization to open a new development hotel for business within 18 months from the date of commencement of construction and within 24 months from the date of the License.
You may apply for an extension of the construction commencement or completion deadlines. Holiday will consider various factors which may influence your extension request, including the ability to obtain financing or building permits, zoning and local ordinances, weather conditions, shortages or delayed installation of equipment, fixtures and signs. Holiday's approval of extension requests is not automatic. You will be responsible for any expenses incurred by Holiday in processing the extension request. As Note 7 to Item 6 describes, there is a fee for extending these deadlines.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a franchisee must complete construction and furnishing and obtain authorization to open a new development hotel for business within 18 months from the date construction commences, and within 24 months from the date of the License agreement. This means that Even Hotels franchisees have a year and a half to finish building their new hotel once they start construction.
However, Even Hotels may grant an extension to the construction completion deadline. The FDD states that franchisees can apply for an extension, and Holiday will consider various factors that may influence the request. These factors include the ability to obtain financing or building permits, zoning and local ordinances, weather conditions, and shortages or delayed installation of equipment, fixtures, and signs.
It's important to note that Even Hotels' approval of extension requests is not automatic, and the franchisee will be responsible for any expenses incurred by Holiday in processing the extension request. This highlights the importance of careful planning and proactive management of the construction process to avoid potential delays and additional costs. Franchisees should communicate regularly with Even Hotels and address any potential issues promptly to ensure timely completion of the project.