Does an Even Hotels franchisee have to pay chargeback fees regardless of the outcome of the chargeback dispute?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
7.1 Chargebacks Generally. You must reimburse us for all transactions you submit that are charged back and all related amounts, including: (a) all Chargebacks; (b) all fees, fines, penalties, assessments, and other amounts related to disputing or arbitrating a Chargeback or failing to produce records within applicable time limits; and (c) all Chargeback Fees set forth on the Fee Schedule or elsewhere in the Agreement, regardless of whether a Chargeback is settled in your favor or the Cardholder's favor.
7.2 Disputing Chargebacks. You may dispute a Chargeback as provided in the Card Organization Rules, including any requirements for timely submission.
Our obligation to you respecting Chargeback disputes is limited to presenting your dispute to the appropriate Card Organization, to the limited extent required by Card Organization Rules.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are responsible for chargeback fees, regardless of the dispute's outcome. Specifically, Even Hotels requires franchisees to reimburse them for all transactions that result in a chargeback. This includes the chargeback itself, any related fees, fines, penalties, assessments, and other amounts associated with disputing or arbitrating the chargeback.
This policy means that an Even Hotels franchisee will incur these expenses whether the chargeback is ultimately settled in their favor or in the cardholder's favor. The FDD also states that the franchisee may dispute a chargeback as provided in the Card Organization Rules, but Even Hotels' obligation is limited to presenting the dispute to the appropriate Card Organization.
This arrangement places the financial burden of chargebacks squarely on the franchisee, even in cases where they might successfully dispute the charge. Franchisees should be aware of this potential cost and factor it into their financial planning. It is common practice in many franchise systems to hold franchisees accountable for chargebacks, as they are the ones directly interacting with customers and processing transactions.