For Even Hotels franchisees, who is responsible for all chargebacks and adjustments associated with the transactions submitted for processing?

According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee is responsible for all chargebacks and adjustments associated with the transactions that they submit for processing. This means that if a customer disputes a charge, or if there are any other discrepancies with a transaction, the Even Hotels franchisee will be held liable for the associated costs.

This responsibility extends to various fees, fines, and penalties related to disputing or arbitrating chargebacks, regardless of whether the chargeback is settled in the franchisee's favor or the cardholder's favor. Even Hotels may attempt to reverse a chargeback with the issuer, but this is not guaranteed, and neither Even Hotels nor the issuer is responsible if the customer successfully charges back a card transaction, even if the franchisee provided the goods or services and is legally entitled to payment.

Furthermore, if the Even Hotels franchisee's chargeback percentage exceeds the estimated industry chargeback percentage, they will be required to pay an excessive chargeback fee for all chargebacks occurring in that month for that line of business. The industry chargeback percentage is subject to change by Even Hotels to reflect changes reported by Visa, Mastercard, or Discover. The franchisee's chargeback percentage is calculated based on the total Visa, Mastercard, and Discover chargeback items or dollar amounts divided by the number or dollar amount of transactions submitted that month.

Given these stipulations, it is crucial for prospective Even Hotels franchisees to implement robust fraud prevention measures and maintain meticulous records of all transactions. They should also carefully review all statements and reports related to card transaction activity and promptly notify Even Hotels of any discrepancies or errors within 90 days to avoid potential liabilities.