factual

Who funds American Express transactions for Even Hotels, and what is the franchisor's responsibility regarding the funding and settlement of these transactions?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (f) American Express. American Express transactions are funded by American Express. American Express will provide you with its own agreement that governs those transactions. We are not responsible for and assume no liability with regard to the funding and settlement of American Express transactions. American Express will charge additional fees for the services it provides.

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, American Express transactions are funded directly by American Express. The FDD explicitly states that Even Hotels is not responsible for the funding and settlement of these transactions. Instead, American Express provides its own agreement to the franchisee, which governs the terms of these transactions, including any additional fees for the services they provide.

This arrangement means that Even Hotels franchisees will deal directly with American Express for American Express card transactions, including receiving funds and resolving any related issues. The franchisee needs to understand the terms and conditions of the agreement with American Express, as Even Hotels will not act as an intermediary for these transactions. This direct relationship simplifies the process but also places the onus on the franchisee to manage their American Express account effectively.

This is a fairly common practice in the franchise industry, where franchisors often allow franchisees to manage relationships with specific vendors or service providers directly. However, franchisees should carefully review the agreement with American Express to fully understand their obligations and any associated costs. It is also important to note that Even Hotels bears no liability regarding the funding and settlement of American Express transactions, so franchisees must resolve any disputes or issues directly with American Express.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.