According to Even Hotels's 2025 Franchise Disclosure Document, the initial license term varies depending on the type of franchise. For a new development, the term begins on the Effective Date and expires 20 years after the hotel opens in the Brand System. However, if the franchise is a conversion, meaning an existing hotel is being rebranded as an Even Hotels location, the initial license term is 10 years or more from the date the Hotel opens in the Brand System. For a change of ownership or re-licensing, the term is 10 years or more from the Effective Date.

This difference in term length is significant for potential franchisees. A shorter term for conversions might reflect the reduced initial investment and risk compared to building a new hotel from the ground up. However, it also means that conversion franchisees will need to consider renewal or re-licensing sooner than those with new developments. The Even Hotels FDD states that the License does not provide for renewals or term extensions. If Even Hotels agrees to re-license, the franchisee may be asked to sign a contract with materially different terms and conditions than their original contract.

Prospective franchisees should carefully consider the implications of the initial term length and the conditions for re-licensing. Since the terms can be materially different, it is important to understand what factors might influence the terms of a new license agreement. This includes potential changes in fees, brand standards, or other obligations. Franchisees should discuss these factors with Even Hotels during their due diligence to fully understand the long-term commitment and potential costs associated with the franchise.