What is the late charge for overdue payments related to the Even Hotels equipment lease?

According to the 2025 FDD, Even Hotels franchisees who fail to pay equipment lease rent or any other amount required by the lease within 10 days of the due date will incur a late charge. This late charge is calculated as five percent (5%) per month of the overdue payment. However, the FDD specifies that the late charge will be such lesser amount that Even Hotels is entitled to receive under any applicable law.

This means that if state or local laws impose a lower maximum late fee, Even Hotels will adhere to that lower amount. For a prospective franchisee, this indicates that Even Hotels aims to comply with legal limits on late fees, which can vary by jurisdiction. It is important to be aware of the specific regulations in the franchisee's area to understand the potential late fee implications.

In practical terms, a franchisee should prioritize timely payments to avoid these charges. If a payment is late, they should be prepared to pay the 5% late fee or the legally allowed maximum, whichever is lower. Understanding the local laws regarding late payment fees is crucial for managing finances effectively as an Even Hotels franchisee.