What is the length of the initial license term for an Even Hotels franchise if it is a new development?

According to Even Hotels' 2025 Franchise Disclosure Document, the initial license term for a new hotel development begins on the effective date and expires 20 years after the hotel opens within the Even Hotels brand system. For a conversion, the 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 means that if a franchisee builds a new Even Hotels location, the franchise agreement will last for 20 years once the hotel is open and operating. This provides a substantial period for the franchisee to establish the business, recoup their investment, and generate profits. The longer term for new developments, compared to conversions or changes of ownership, reflects the greater investment and risk typically associated with building a new hotel from the ground up.

It is important to note that the license does not provide for renewals or extensions. If Even Hotels agrees to re-license, the franchisee may be required to sign a contract with materially different terms and conditions than the original agreement. This lack of guaranteed renewal is a common practice in franchising, allowing the franchisor to update agreements and maintain brand standards. Prospective franchisees should carefully consider this aspect and discuss potential re-licensing terms with Even Hotels during their due diligence process.

Prospective franchisees should be aware that the initial term length is a critical factor in evaluating the overall franchise opportunity. A longer initial term, such as the 20 years offered for new Even Hotels developments, can provide greater stability and potential for long-term success. However, franchisees must also be prepared for the possibility of needing to negotiate a new agreement with potentially different terms at the end of the initial term.