What is the definition of 'Effective Date' in the Even Hotels agreement?

According to the 2025 Even Hotels Franchise Disclosure Document, the 'Agreement Effective Date' is defined as the date when the agreement is signed by an authorized representative of both the Company and the Customer. This signifies the point at which the agreement officially comes into force.

However, the FDD also mentions a 'Term Effective Date,' which is distinct from the 'Agreement Effective Date.' The 'Term Effective Date' is defined as January 1, 2020, if the agreement is signed on or before September 30, 2020. If the agreement is signed after September 30, 2020, the 'Term Effective Date' will be the first day of the month in which the agreement is signed by the customer. The term of the agreement continues from the 'Term Effective Date' until the expiration or earlier termination of the beverage marketing agreement between the Company and Six Continents Hotels, Inc., dated January 1, 2020.

In simpler terms, the 'Agreement Effective Date' marks when the agreement is signed and becomes legally binding, while the 'Term Effective Date' determines when the actual operational term of the agreement begins. The 'Term Effective Date' is tied to specific dates and the signing date of the agreement, which in turn affects the duration of the agreement based on the beverage marketing agreement with Six Continents Hotels, Inc. Prospective franchisees should pay close attention to these dates as they impact the overall timeline and obligations under the franchise agreement.