Does the Even Hotels license agreement provide for renewal or extension of the term?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In | Summary |
|---|---|---|
| Agreement | ||
| a. Length of the license Term | License: 11.A | The term begins on the Effective Date and expires 20 years Hotel opens in the Brand System for a new development; 10 years or more from date Hotel opens in the Brand System for a conversion; and 10 years or more from Effective Date for a change of ownership or re licensing. |
| b. Renewal or extension of term | License: 11.A | The License does not provide for renewal or term extensions. |
| c. Requirements for you to Renew or Extend | N/A | The License does not provide for renewal or term extensions. If we agree to Re-license, you may be asked to sign a contract with materially different terms and conditions than your original contract. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 87–90)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the license agreement does not provide for renewal or term extensions. The initial term for a new development is 20 years from when the hotel opens in the Brand System. For a conversion, the initial 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 initial term is 10 years or more from the effective date.
If a franchisee wishes to continue operating an Even Hotels franchise after the initial term, they may be asked to sign a new contract with materially different terms and conditions than their original contract. This means that the terms of the new agreement, including fees, standards, and other obligations, could be significantly different from the original agreement.
In the franchise industry, it is common for franchise agreements to include renewal options, but the Even Hotels franchise agreement does not. This is an important factor for prospective franchisees to consider, as it means they will need to renegotiate a new agreement if they wish to continue operating the franchise after the initial term. This renegotiation carries the risk of less favorable terms or even the inability to continue the franchise. Prospective franchisees should carefully consider this aspect and discuss it with the franchisor to understand the potential implications and options available at the end of the initial term.