Where can an Even Hotels franchisee find the Chargeback Fees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 6.5 Excessive Chargebacks. If your Chargeback percentage for any line of business exceeds the estimated industry Chargeback percentage, you shall, in addition to the Chargeback fees and any applicable Chargeback handling fees or fines, pay us an excessive Chargeback fee for all Chargebacks occurring in such month in such line(s) of business.
Each estimated industry Chargeback percentage is subject to change from time to time by us in order to reflect changes in the industry Chargeback percentages reported by Visa, Mastercard or Discover.
Your Chargeback percentage will be calculated as the larger of (a) the total Visa, Mastercard and Discover Chargeback items in any line of business in any calendar month divided by the number of Visa, Mastercard and Discover transactions in that line of business submitted that month, or (b) the total dollar amount of Visa, Mastercard and Discover Chargebacks in any line of business received in any calendar month divided by the total dollar amount of your Visa, Mastercard and Discover transactions in that line of business submitted in that month.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, details regarding chargeback fees can be found within Item 23, specifically under section 6.5, which discusses excessive chargebacks.
The FDD states that if an Even Hotels franchisee's chargeback percentage exceeds the estimated industry chargeback percentage for any line of business, the franchisee will be required to pay an excessive chargeback fee for all chargebacks occurring in that month for that line of business, in addition to the standard chargeback fees and any applicable handling fees or fines. The industry chargeback percentages are subject to change by the franchisor to reflect changes reported by Visa, Mastercard, or Discover.
The chargeback percentage is calculated as the higher of two figures: (a) the total number of Visa, Mastercard, and Discover chargeback items divided by the number of transactions for those cards, or (b) the total dollar amount of Visa, Mastercard, and Discover chargebacks divided by the total dollar amount of transactions for those cards. This calculation is performed monthly for each line of business.