For Even Hotels, what happens if a hotel has unpaid invoices for leased equipment?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Any unpaid invoices will be handled as follows (the "Unpaid Invoice Procedure"): All unpaid invoices by a Hotel will be subject to Company's payment/credit terms and conditions applicable to such Hotel. Furthermore, Company may refuse to deliver further any Company Beverages to the affected Hotel until the unpaid invoice is satisfied.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, unpaid invoices for leased equipment are handled according to the "Unpaid Invoice Procedure." The specific terms and conditions of this procedure are applicable to each Even Hotels location and are subject to the company's payment/credit terms.
Specifically, the company has the right to refuse to deliver any further company beverages to the affected Even Hotels location until the outstanding invoice is paid. This could potentially disrupt the hotel's operations and guest services, impacting revenue and customer satisfaction.
Furthermore, if an Even Hotels franchisee defaults on their lease agreement by failing to make payments when due, or fails to comply with any provision of the lease and does not remedy the failure within twenty days of written notice from the company, this constitutes a 'Default.' Upon such a default, Even Hotels may terminate the lease for any or all items of equipment, enter the hotel's premises to repossess the equipment at the franchisee's expense, and pursue any other legal or equitable remedies for breach of the lease.