Does the Even Hotels license agreement provide for renewal or extensions 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 renewals or extensions of the term. 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 license agreement with materially different terms and conditions than the original contract. This means that renewal is not guaranteed, and the terms of a new agreement could be less favorable to the franchisee.
This lack of a guaranteed renewal is a significant point for prospective franchisees to consider. Unlike some franchise systems that offer a right to renew under similar terms, Even Hotels franchisees face the uncertainty of negotiating a new agreement. It is important to discuss the conditions under which Even Hotels might offer a new license agreement and what factors they consider when determining the terms of that agreement.