If an Even Hotels franchisee is found to be promoting a competing business, what steps will Even Hotels take?

Based on the 2025 Franchise Disclosure Document, the FDD does not specify the exact steps Even Hotels would take if a franchisee promotes a competing business. However, Item 11 outlines Holiday's (the franchisor) right to maintain high standards of quality and service at all hotels using the Brand System and to protect the public image and reputation of the EVEN Hotels brand name. Holiday's judgment in these matters is controlling. This suggests that Holiday has broad authority to address situations where a franchisee's actions, such as promoting a competing business, could harm the brand.

Given this broad authority, if a franchisee were to promote a competing business, Even Hotels could potentially take actions such as issuing a notice of default, demanding that the franchisee cease the activity, or, in more severe cases, terminating the franchise agreement if the breach is not cured. The specific actions would likely depend on the severity and impact of the franchisee's actions, as well as the terms outlined in the franchise agreement regarding franchisee conduct and protection of the brand.

Prospective franchisees should carefully review the franchise agreement and discuss with Even Hotels what specific actions or omissions would be considered a breach of contract. Understanding these potential consequences is crucial for franchisees to avoid actions that could jeopardize their franchise agreement and investment. It would be prudent to seek clarification on what constitutes a conflict of interest and what steps Even Hotels might take in such situations.