For Even Hotels, what criteria define 'mature hotels' for calculating pre-opening liquidated damages as outlined in paragraph 13.J of the License Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of calculating the pre-opening liquidated damages set forth in paragraph 13.J of the License, "mature hotels" means hotels which were open for two full years or longer; were licensed or, alternatively, owned and/or managed by Holiday or one of its affiliates, and; were not in financial or quality default of their applicable license or management agreement obligations as of the applicable date.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the term "mature hotels" is specifically defined for the purpose of calculating pre-opening liquidated damages as outlined in paragraph 13.J of the License Agreement.
For a hotel to be considered a "mature hotel" under the Even Hotels franchise agreement, it must meet three specific criteria. First, the hotel must have been open and operating for at least two full years. Second, the hotel must have been either licensed by Holiday or owned and/or managed by Holiday or one of its affiliates. Finally, the hotel must not have been in financial or quality default of its obligations under the applicable license or management agreement as of the relevant date.
This definition is important for prospective Even Hotels franchisees because it clarifies how pre-opening liquidated damages are calculated in the event of a termination. The criteria ensure that the calculation is based on the performance of established, well-managed hotels within the Holiday system, providing a more accurate and fair assessment of potential damages.