What is the length of the initial term for the Next-Gen PMS Agreement for an Even Hotels franchise?
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 Even Hotels' 2025 Franchise Disclosure Document, the initial term for the Next-Gen PMS Agreement is 48 months, beginning upon activation of the PMS Solution at the hotel. This means that the agreement lasts for four years from the date the system is up and running at the Even Hotels location.
The agreement automatically renews for successive 12-month terms unless either party provides written notice of non-renewal at least 90 days before the end of the current term. This auto-renewal clause is fairly standard in franchise agreements, ensuring continuity unless a conscious decision is made to terminate.
If a franchisee wishes to discontinue the Next-Gen PMS Agreement, they must provide written notice at least 90 days before the end of either the initial 48-month term or any subsequent 12-month renewal term. Failure to provide timely notice will result in an automatic renewal of the agreement for another year. This clause ensures that both Even Hotels and the franchisee have adequate time to prepare for any changes in the PMS solution.