Does the Even Hotels FDD include an exhibit outlining the terms for leasing dispensing equipment?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
EXHIBIT D DISPENSING EQUIPMENT LEASE
LEASE AGREEMENT AND TERM.
Company hereby leases to the PSH Owner of each Corporate Hotel (referred to as "Equipment Lessee" in this Exhibit D) all beverage dispensers provided to Equipment Lessee ("Equipment"), subject to the terms and conditions set forth in this Lease.
Unless otherwise agreed in writing, the Equipment will also include, where applicable, all permanent merchandising, menu boards, refrigeration units, ice makers and water filtration equipment installed by Company on Equipment Lessee's premises.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Exhibit D outlines the terms of the Dispensing Equipment Lease. The exhibit states that Company leases beverage dispensers to the PSH Owner of each Corporate Hotel, referred to as "Equipment Lessee," subject to the terms and conditions set forth in the lease. The equipment includes permanent merchandising, menu boards, refrigeration units, ice makers, and water filtration equipment installed by the Company on the Equipment Lessee's premises, unless otherwise agreed in writing.
According to Item 23, in any state where a lease without any additional charge is not permitted, or if the customer elects to lease additional dispensers, these dispensers will be leased at an annual rate. This rate is calculated by multiplying the total installed cost of the additional dispensers by the current lease factor, which is 0.24. If the lease factor changes during the term, any dispenser installed after the change will be subject to the new lease factor. The dispensers remain the property of the Company and are subject to the terms and conditions of the Lease, unless specifically changed by the Program Terms and Conditions or the Standard Terms and Conditions of the agreement.
If the Customer elects to lease additional equipment, the annual lease rate is calculated by multiplying the total installed cost of the additional equipment by the then-current lease factor, which is 0.24. The lease charges, if any, will be invoiced, and any unpaid invoices will be handled according to the Unpaid Invoice Procedure defined in Exhibit A-1, Section 5. The company will provide certain equipment at no cost to the customer, including orange juice carafes, with specific quantities provided to Hotels in the Holiday Inn and Crowne Plaza brands in the first two years. The Customer may use the Company's service network without additional charge for ordinary mechanical repairs needed for Juice equipment, subject to the terms and conditions in Section 6.1 of Exhibit A-1.