What are some examples of non-curable defaults that could lead to termination of the Even Hotels license agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
.B, | Holiday may terminate with cause. | | Cause (Notes 1 and 2) | 11.C, 13.J and Attachment "B" MTSS: 10.3 | You pay liquidated damages if Holiday terminates under Paragraphs 12.1, 11.C or 13.J. See Note 1 and 2 | | g. "Cause" defined – defaults which can be cured (Note 2) | License: 11.B and 13.J | Any default other than those listed in "h" below. See Note 2. | | h. "Cause" defined – non-curable defaults | License: 10, 11.C & Attachment "B" | Non-curable defaults: bankruptcy; non dismissed judgments exceeding $50,000; trademark misuse, or if you contest Holiday's ownership of its trademarks; loss of possession of the property; dissolution of the licensee entity; failure to identify or operate the Hotel as a Holiday brand Hotel; violation of licensor's proprietary rights; unapproved transfers; conviction of a felony; false books and records; failure to comply with safety, security or privacy of guests or reputation standards; condemnation or casualty occurs and Hotel does not reopen when | | Provision | Section In Agreement | Summary | |-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 87–90)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, there are specific defaults that cannot be cured and may lead to the termination of the license agreement. These non-curable defaults include situations such as bankruptcy, having non-dismissed judgments exceeding $50,000, trademark misuse, or contesting Even Hotels' ownership of its trademarks.
Other non-curable defaults outlined in the FDD involve the loss of possession of the property, dissolution of the licensee entity, failure to identify or operate the Hotel as an Even Hotels brand, and violation of the licensor's proprietary rights. Furthermore, unapproved transfers, conviction of a felony, maintaining false books and records, and failure to comply with safety, security, or privacy standards for guests or the hotel's reputation can also result in termination.
Additional causes for non-curable default include condemnation or casualty events where the hotel does not reopen as required, unauthorized use of Even Hotels' marks, and refusal to allow inspections or audits by the franchisor. These stipulations are important for prospective franchisees to understand, as these defaults provide Even Hotels with grounds for immediate termination of the franchise agreement without an opportunity for the franchisee to correct the issue.