For Even Hotels, what happens if the Equipment Lessee requests the removal of any Equipment?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment Lessee may request the removal of any Equipment upon thirty (30) days prior written notice to Company, and in addition, Company may remove any piece of Equipment for any reason upon thirty (30) days prior written notice to Customer.
Removal of Equipment will not affect the term of any agreement between the parties.
If this Lease is terminated with respect to any piece of Equipment for any reason, other than Company removing a piece of Equipment without cause under this section, prior to 100 months from the Commencement Date for that piece of Equipment, Equipment Lessee will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation, (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment.
Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs." The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been removed from Equipment Lessee's premises and will survive the expiration or termination of any agreement into which this Lease is incorporated.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an Equipment Lessee (which would be the franchisee) may request the removal of any equipment by providing Even Hotels with 30 days prior written notice. However, the removal of equipment does not affect the term of any agreement between the parties.
If the lease is terminated for any reason, other than Even Hotels removing the equipment without cause, before 100 months from the commencement date for that piece of equipment, the Equipment Lessee must pay Even Hotels the actual cost of removal, including shipping and handling charges, and remanufacturing costs. The Equipment Lessee will also be responsible for the unamortized portion of the costs of installation, non-serialized parts (e.g., pumps, racks, and regulators), and other ancillary equipment. These costs are collectively referred to as "unbundling costs."
The terms of the lease will remain in effect until the equipment has been removed from the Equipment Lessee's premises and will survive the expiration or termination of any agreement into which the lease is incorporated. This means that even if the franchise agreement ends, the equipment lease obligations continue until the equipment is physically removed and all associated costs are settled.