What is the definition of "Minimum Retention Period" (MRP) for Even Hotels franchisees, and what consequences are associated with not maintaining service for the duration of the MRP?

According to Even Hotels' 2025 Franchise Disclosure Document, the "Minimum Retention Period" or "MRP" is defined as the period identified for a Service Component in the Pricing Schedule or Service Publication. During this period, an Eligible Participant, such as an Even Hotels franchisee, is required to maintain service. The primary consequence of not maintaining service for the duration of the MRP is the requirement to make a payment or repayment of certain credits, waived charges, or amortized charges that were initially provided as incentives to maintain the service. This encourages franchisees to commit to the service for the agreed-upon duration.

For a prospective Even Hotels franchisee, this means carefully reviewing the Pricing Schedule and Service Publications to understand the MRP for each Service Component they subscribe to. It's crucial to factor in these retention periods when making financial projections, as early termination can lead to unexpected costs. Franchisees should evaluate whether the benefits of the service outweigh the potential costs of maintaining it for the entire MRP, especially if there's a risk of needing to discontinue the service due to unforeseen circumstances.

This type of clause is relatively common in franchise agreements, particularly for technology or service-based components. Franchisors often provide initial incentives to encourage adoption, but they also need to ensure a reasonable return on their investment. By implementing an MRP with financial consequences for early termination, Even Hotels aims to balance the benefits for franchisees with the need to maintain the viability of its service offerings. Franchisees should seek clarification from Even Hotels regarding specific MRPs and associated costs before committing to any Service Component.