What is the length of the initial term for the Even Hotels Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Term and Extension. This Agreement is effective upon signing, and the term of 48 months will begin upon activation of the PMS Solution at the Hotel (the "Initial Term"). The Agreement will automatically renew for successive renewal terms of 12 months (each, a "Renewal Term") upon the expiration of the Initial Term and each Renewal Term, unless a Party gives written notice of non-renewal to the other Parties at least 90 days prior to the end of the Initial Term or then-current Renewal Term, as applicable. The Initial Term and Renewal Terms shall collectively be referred to as the "Term".
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the initial term for the PMS (Property Management System) Agreement is 48 months, beginning upon activation of the PMS Solution at the hotel. This means that the franchisee is committed to using the HotelKey PMS for four years from the date it goes live at their Even Hotels location.
Following the initial 48-month term, the agreement automatically renews for successive 12-month periods, referred to as Renewal Terms. This auto-renewal continues unless either party provides written notice of non-renewal at least 90 days before the end of the current term (either the Initial Term or any subsequent Renewal Term). Therefore, franchisees must actively manage the agreement and provide timely notice if they wish to terminate the PMS agreement at the end of the initial or any renewal term.
It is important for prospective Even Hotels franchisees to understand the implications of this term, as early termination before the end of the Initial Term may incur a termination fee. Franchisees should carefully consider their long-term technology needs and satisfaction with the PMS Solution before the PMS Solution is activated, as they will be locked into the agreement for 48 months unless they provide proper notice at least 90 days before the end of the Initial Term.