For Even Hotels franchisees, what items are deducted from settlements for transactions?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
All settlements to you for your transactions will be net of Credits, adjustments, Servicers Fees, Third Party Based Fees, Chargebacks, and any other amounts then due from you.
- 5.3 Payments to You Are Provisional. All credits to your Settlement Account or other payments to you are provisional and are subject to, among other things, our right to deduct our fees provided no such amounts are disputed by you in good faith, our final audit, Chargebacks (including our related losses), and Third Party Based Fees (including fees, fines, and any other charges imposed on us by the Card Organizations due to your noncompliance with Card Organizations Rules).
You agree that we may debit or credit your Settlement Account for any deficiencies, overages, fees, Servicers Fees, Third Party Based Fees, pending Chargebacks, and any other amounts owed to us or any of our respective Affiliates, or we may deduct such amounts from settlement funds or other amounts due to you from us, or our respective Affiliates for Services provided under the Agreement.
Alternatively, we may elect to invoice you for any such amounts, net due 30 days after your receipt of the invoice.
5.4 Good Faith Disputes. Notwithstanding anything to the contrary in the Agreement, if any amounts debited, credited, or otherwise deducted by us are disputed by you in good faith, we will use good faith efforts to work with you to resolve the dispute in a timely manner and promptly return any such disputed amounts that are owed to you.
5.5 Funding Delays. We will not be liable for any delays in receipt of funds or errors in debit and credit entries caused by you or any Third Party, including, without limitation, any delay in settlement funding for a Card transaction from a Card Organization to us.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, settlements for transactions will be net of several items. These deductions include credits, adjustments, servicer fees, third-party-based fees, chargebacks, and any other amounts then due from the franchisee to Even Hotels.
Even Hotels' FDD specifies that all credits to the franchisee's settlement account or other payments are provisional. This means that these credits are subject to adjustments based on several factors. These factors include the franchisor's right to deduct fees, provided that the franchisee does not dispute these fees in good faith. The credits are also subject to final audits, chargebacks (including related losses), and third-party-based fees, which may include fees, fines, and other charges imposed by card organizations due to the franchisee's noncompliance with card organization rules.
The FDD states that Even Hotels is authorized to debit or credit the franchisee's settlement account for any deficiencies, overages, fees, servicer fees, third-party-based fees, pending chargebacks, and any other amounts owed to Even Hotels or its affiliates. Alternatively, Even Hotels may deduct such amounts from settlement funds or other amounts due to the franchisee from Even Hotels or its affiliates for services provided under the agreement. If Even Hotels chooses to invoice the franchisee, the net amount is due 30 days after the franchisee receives the invoice.
However, the Even Hotels FDD provides a safeguard for franchisees. If a franchisee disputes any debited, credited, or deducted amounts in good faith, Even Hotels will work with the franchisee to resolve the dispute promptly and return any disputed amounts that are owed to the franchisee. The FDD also clarifies that Even Hotels will not be liable for delays in receiving funds or errors in debit and credit entries caused by the franchisee or any third party, including settlement funding delays for card transactions from a card organization.