What is the extent of the Bank's responsibilities and liabilities regarding Non-Bank Card transactions or Non-Bank Services within the Even Hotels agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Bank is not responsible for, and has no liability to you in any way with respect to, Non-Bank Card transactions or Non-Bank Services.
See Section 16.1 for additional details.
2 Services And Third Party Services
- 2.1 The Services. The term "Services" means the activities we undertake to authorize, process, and settle Card transactions undertaken by Cardholders at your Locations, and all other equipment, products, and services we provide under the Agreement. Subject to Card Organization Rules, Services may be performed by Servicers, only Processor, our Affiliates, our agents, or our service providers. You may use the Services only for your own proper business purposes and only in accordance with the Agreement. You may not use the Services for personal, household, or non-commercial purposes.
- 2.2 Exclusivity. During the term of the Agreement, you will use us as your exclusive provider of all Services within the United States of America except with respect to POS terminal transactions initiated at parking, spa, gift shop, restaurant, bars, and lounge locations.
- 2.3 Service Records. We will retain legible copies of all transaction records in accordance with Applicable Law and Card Organization Rules. You must provide all Sales Drafts, Credit Drafts, and other transaction records requested by us within the time limits established by Card Organization Rules. We will provide all transaction records requested by you, to the extent such requests are reasonable, within the time limits established by Card Organization Rules.
- 2.4 Restrictions on Your Use of the Services. You shall not, and you shall not permit any Third Party to, do or attempt to do any of the following:
- (a) Sell, distribute, lease, license, sublicense, assign, or otherwise transfer or disseminate any part of the Services, Software, or Intellectual Property, or otherwise permit any Third Party to access or use the Services, Software, or Intellectual Property.
- (b) Copy, modify, enhance, translate, supplement, derive source code or create derivative works from, reverse engineer, decompile, disassemble, or otherwise reduce to human-readable form or attempt to reconstruct the Services, Software, or Intellectual Property (or any portion thereof or underlying ideas thereof).
- (c) Use altered versions of the Services, Software, Intellectual Property, or any portion thereof; or use, operate, or combine any Services, Software, or Intellectual Property with other products, materials, or services in a manner
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the Bank has very limited responsibilities and liabilities regarding Non-Bank Card transactions or Non-Bank Services. The Bank's obligations are limited to providing sponsorship, settlement, and related banking services for certain card transactions, specifically excluding Non-Bank Card transactions or Non-Bank Services. The agreement clarifies that the Bank is not a party to agreements concerning transactions that the Processor sponsors and settles, or Conveyed Transactions, and therefore bears no responsibility or liability for them.
Non-Bank Services are provided to the franchisee by the Processor, not the Bank. The Bank is not responsible for, and has no liability to the franchisee regarding Non-Bank Services. The terms of the agreement regarding Discover Card, American Express Card transactions, and other Non-Bank Services constitute an agreement solely between the franchisee and the Processor. These Non-Bank Services are subject to all the terms and provisions outlined in the agreement, and in case of conflicts, the terms specific to the Non-Bank Service will take precedence.
Even Hotels franchisees should understand that they must enter into a separate agreement with the Card Organization or Issuer that settles Conveyed Transactions and must pursue all related claims and disputes directly with that entity. The Card Organization or Issuer may also charge additional fees for which the franchisee is exclusively responsible. If the Issuer Agreement is terminated or not in effect, the Processor has no obligation to provide services for Conveyed Transactions. The franchisee is responsible for paying fees for Conveyed Transactions and other Non-Bank Services as outlined in their application, MPA Addendum, Fee Schedule, or other disclosures.