What knowledge should an Even Hotels franchisee have regarding the validity of a card transaction?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
s Generally.** You must reimburse us for all transactions you submit that are charged back and all related amounts, including: (a) all Chargebacks; (b) all fees, fines, penalties, assessments, and other amounts related to disputing or arbitrating a Chargeback or failing to produce records within applicable time limits; and (c) all Chargeback Fees set forth on the Fee Schedule or elsewhere in the Agreement, regardless of whether a Chargeback is settled in your favor or the Cardholder's favor.
- 7.2 Disputing Chargebacks. You may dispute a Chargeback as provided in the Card Organization Rules, including any requirements for timely submission. Our obligation to you respecting Chargeback disputes is limited to presenting your dispute to the appropriate Card Organization, to the limited extent required by Card Organization Rules. We will not engage in direct collection efforts against Cardholders on your behalf. The Your Payments Acceptance Guide contains additional details and requirements related to Chargebacks.
- 8 Representations; Warranties; Covenants; Limitations On Liability; Exclusion Of Consequential Damages
- 8.1 Your Representations and Warranties. Without limiting any other warranties hereunder, you represent, warrant to, and covenant with us, and with the submission of each Sales Draft reaffirm that:
- (a) each Card transaction is genuine and arises from a bona fide transaction permissible under the Card Organization Rules by the Cardholder directly with you, represents a valid obligation for the amount shown on the Sales Draft, preauthorized order, or Credit Draft, and does not involve the use of a Card for any other purpose;
- (b) each Card transaction represents an obligation of the related Cardholder for the amount of the Card transaction;
- (c) the amount charged for each Card transaction is not subject to any dispute, set-off or counterclaim;
- (d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivered to or performed for the Cardholder entering into that Card transaction simultaneously upon your accepting and submitting that Card transaction for processing;
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an Even Hotels franchisee must understand several conditions regarding the validity of card transactions. The franchisee must acknowledge that each card transaction represents an obligation of the cardholder for the transaction amount, and this amount is not subject to any dispute, set-off, or counterclaim. The amount charged must be exclusively for the merchandise or services sold, leased, or rented by the franchisee, including taxes but excluding unauthorized surcharges, and the merchandise or service must be delivered or performed simultaneously with the transaction, unless explicitly authorized for delayed delivery or advance deposits. The franchisee must also ensure compliance with data security standards, especially when using merchant providers, and implement security measures to combat fraud.
Furthermore, the Even Hotels franchisee must not have any knowledge or notice of facts indicating that a card transaction is fraudulent, unauthorized, or would impair its validity or collectability. Each transaction must comply with specified terms and conditions, card organization rules, the Your Payments Acceptance Guide, and applicable laws. The sales draft should be free of unauthorized alterations, and the franchisee must complete one card transaction per sale. The franchisee confirms they are validly existing, in good standing, and free to enter into the agreement, with all provided information being true and correct.
Additionally, the franchisee must ensure they are operating under a previously disclosed business name, have not changed their business nature without disclosure, and will use the services only for proper business purposes, avoiding resale to third parties. They also confirm they have not filed an undisclosed bankruptcy petition. The franchisee is responsible for chargebacks and fees arising from fraudulent activity, regardless of AVS responses. If the preferred card verification method (CVM) for chip cards is not used, the franchisee may be liable for fraud or chargebacks, even if it was an EMV transaction. Disabling or suppressing preferred CVM requirements is at the franchisee's sole risk, with FreedomPay not liable for resulting fraud claims or chargebacks.