What is the maximum interest rate that Even Hotels franchisees will pay on past due amounts?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Interest on Late Payments.
Hotel will pay interest on all amounts that become past due at the lesser of: (a) one and one half percent (1½%) per month; or (b) the highest rate allowed by Law.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are required to pay interest on any overdue amounts. The interest rate will be the lesser of two options: either 1.5% per month, or the maximum interest rate permitted by applicable law. This applies to fees associated with the Next-Gen Payments Solution.
This means that if the legal maximum interest rate in the franchisee's jurisdiction is lower than 1.5% per month, the franchisee will only be charged the legally permissible maximum rate. Conversely, if the legal maximum is higher than 1.5%, Even Hotels will cap the interest at 1.5% per month. Franchisees should be aware of the laws in their specific location to understand the potential interest charges on late payments.
It is important for prospective Even Hotels franchisees to understand these payment terms and ensure they have sufficient financial planning to avoid late payment penalties. Understanding the local laws regarding maximum interest rates is also crucial for budgeting and financial management. This policy is fairly standard in franchising, as franchisors need to protect themselves against late payments while also complying with legal restrictions.