What ethical requirements are the auditors of Even Hotels required to meet?

According to Even Hotels' 2025 Franchise Disclosure Document, the auditors are required to be independent of the company and to meet other ethical responsibilities, in accordance with the relevant ethical requirements relating to their audit. This requirement is based on auditing standards generally accepted in the United States of America (US GAAS).

This means that the auditors must maintain objectivity and impartiality throughout the audit process. They should not have any financial, personal, or professional relationships with the company that could compromise their judgment or create a conflict of interest. The ethical responsibilities also encompass adhering to a code of conduct that ensures integrity, confidentiality, and due care in performing their duties.

For a prospective Even Hotels franchisee, this indicates that the financial statements have been reviewed by an independent party who is bound by ethical standards to provide an unbiased opinion. This helps ensure the accuracy and reliability of the financial information presented in the FDD, which is crucial for making an informed investment decision. Franchisees can have more confidence that the financial data reflects a true and fair view of the company's financial position and performance.

It is common practice in the franchise industry for franchisors to have their financial statements audited by independent auditors. This practice enhances transparency and credibility, providing potential franchisees with a greater level of assurance regarding the financial health and stability of the franchise system. The auditor's adherence to ethical requirements further strengthens the reliability of the audit report.