Is Even Hotels liable for delays in receiving funds caused by the franchisee or a third party?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
FREEDOMPAY IS NOT RESPONSIBLE FOR FREEDOMPAY'S SYSTEMS DOWNTIME RESULTING FROM OFFLINE MODE BEING DISABLED, OR FOR ISSUES THAT ARE CAUSED BY HOTEL'S INTERNAL NETWORK OR SYSTEMS, CAUSING SUCH SYSTEMS TO GO OFFLINE, AND FREEDOMPAY'S SERVICE LEVELS WILL BE DEEMED NOT IMPACTED IN ANY WAY BY SUCH DOWNTIME.
FOR CLARITY, IF OFFLINE MODE IS DISABLED, HOTEL WILL NOT BE ELIGIBLE FOR ANY REFUNDS OF FEES, AND FREEDOMPAY'S WARRANTIES ARE VOIDED.
- 2.1.2.
CVV DISABLEMENT DISCLAIMER IF PROMPTING FOR THE CVV IS DISABLED (FOR MANUAL TRANSACTIONS ONLY), HOTEL ACKNOWLEDGES AND AGREES THAT ANY INTERCHANGE DOWNGRADES RESULTING FROM SUCH CVV DISABLEMENT, AND ANY LIABILITY FOR INCREASED INTERCHANGE CHARGES AND MERCHANT SERVICES CHARGES RESULTING FROM SUCH CVV DISABLEMENT ARE THE SOLE OBLIGATION OF HOTEL, AND FREEDOMPAY SHALL HAVE NO LIABILITY TO HOTEL FOR SUCH CHARGES.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
The 2025 Franchise Disclosure Document does not explicitly state whether Even Hotels is liable for delays in receiving funds caused by the franchisee or a third party. However, the FDD does address circumstances where FreedomPay, a third-party payment system, is not responsible for certain issues. Specifically, FreedomPay is not responsible for downtime resulting from offline mode being disabled or issues caused by the hotel's internal network or systems. Additionally, Even Hotels acknowledges that they are responsible for increased interchange charges and merchant services charges resulting from CVV disablement for manual transactions.
Furthermore, the FDD includes clauses that limit IHG's (InterContinental Hotels Group) liability in various situations. IHG is not liable for indirect, consequential, special, incidental, or punitive damages, even if such damages were foreseeable. IHG's liability to the hotel is capped at the fees paid by the hotel in the three months preceding the event giving rise to the liability. These limitations suggest that Even Hotels aims to limit its financial exposure for various operational issues, including those potentially related to payment processing delays.
While the FDD does not directly address liability for delays in receiving funds, it does provide a framework for understanding how Even Hotels and its related entities manage liability and risk. A prospective franchisee should seek clarification from Even Hotels regarding specific scenarios related to payment delays and associated liabilities to fully understand their financial responsibilities and potential risks.