Is Holiday, SCH, or GIAC obligated to provide financing to Even Hotels franchisees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not offer any formal program for direct or indirect financing. Holiday, SCH or its affiliate, General Innkeeping Acceptance Corporation, ("GIAC") may furnish loans or guaranties to licensees.
Holiday, SCH and GIAC consider making loans or guaranties under terms and conditions that would be negotiated on a case-by-case basis with the prospective licensee and any decision to make a loan or provide a guaranty would be made in the judgment of Holiday, SCH or GIAC alone, and conditioned upon approval of the Executive Committee and Board of Directors. It is your responsibility alone to obtain adequate financing for all expenses related to the development, opening and operation of the Hotel.
Source: Item 10 — FINANCING (FDD pages 69–70)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Holiday, SCH, or GIAC are not obligated to provide financing to franchisees. While Holiday, SCH, or GIAC may furnish loans or guaranties to licensees, they do so under terms and conditions negotiated on a case-by-case basis. Any decision to provide a loan or guaranty is at the sole discretion of Holiday, SCH, or GIAC and is subject to approval by the Executive Committee and Board of Directors.
This means that prospective Even Hotels franchisees should not rely on receiving financing from Holiday, SCH, or GIAC. It is the franchisee's sole responsibility to secure adequate financing for all expenses related to the development, opening, and operation of the hotel. This includes costs associated with real estate, construction, initial inventory, working capital, and ongoing operational expenses.
Given this information, it is crucial for potential Even Hotels franchisees to have a solid financial plan and explore various financing options from external sources. They should research and secure financing commitments well in advance of signing the franchise agreement. Understanding that financing is not guaranteed by the franchisor is a critical aspect of assessing the overall feasibility and risk associated with investing in an Even Hotels franchise.