Is an Even Hotels franchisee entitled to interest on funds held in the Reserve Account?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless specifically required by law, you shall not be entitled to interest on any funds held by us in a Reserve Account.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are generally not entitled to interest on funds held in a Reserve Account. Specifically, unless required by law, Even Hotels franchisees will not receive interest on funds held in the Reserve Account.
The Reserve Account is established to cover potential financial risks to Even Hotels, such as fraud, chargebacks, and other fees. The funds in the Reserve Account are held by Even Hotels and allocated to sub-accounts, but they may be commingled with other funds.
This policy is fairly standard in franchising, as reserve accounts are designed to protect the franchisor from potential losses. The franchisor typically controls the funds and their disbursement to cover franchisee obligations. Franchisees should be aware that the funds in the Reserve Account are not generating income for them and should factor this into their financial planning.