What is the permitted scope of charges for card transactions for an Even Hotels franchise?

According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee is responsible for certain charges related to credit card transactions, specifically regarding CVV disablement. If an Even Hotels location disables the Card Verification Value (CVV) prompt for manual transactions, the franchisee acknowledges and agrees to be solely responsible for any interchange downgrades. This includes liability for increased interchange charges and merchant services charges resulting from the CVV disablement. FreedomPay, the payment processing service, bears no liability for these charges when CVV prompting is disabled by the hotel.

This has significant implications for an Even Hotels franchisee's operating costs. Disabling CVV might seem like a way to expedite manual transactions, but it shifts the financial burden of increased transaction fees entirely onto the franchisee. These increased costs can erode profit margins, especially in businesses with high volumes of manual credit card entries.

Furthermore, the FDD stipulates that if the franchisee is unable to obtain the proper Key Serial Number (KSN) from their acquiring banks for its PIN key, or if FreedomPay's key injection vendor does not have that PIN key within its system and it cannot be obtained prior to implementation, any consumer who presents a chip and PIN card will be required to utilize chip and signature instead. This could lead to customer dissatisfaction and potentially higher transaction costs if chip and signature transactions incur higher fees.

Prospective Even Hotels franchisees should carefully consider the implications of these policies and evaluate the potential costs associated with credit card processing. Understanding the circumstances under which they would be liable for increased charges, such as disabling CVV or issues with PIN keys, is crucial for accurate financial planning and operational decision-making.