What is the permitted use of card transaction amounts for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) each Card transaction represents an obligation of the related Cardholder for the amount of the Card transaction;
(c) the amount charged for each Card transaction is not subject to any dispute, set-off or counterclaim;
(d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivered to or performed for the Cardholder entering into that Card transaction simultaneously upon your accepting and submitting that Card transaction for processing;
(e) with respect to each Card transaction, you have no knowledge or notice of any fact, circumstance, or defense which would indicate that such Card transaction is fraudulent or not authorized by the related Cardholder or which would otherwise impair the validity or collectability of that Cardholder's obligation arising from that Card transaction or relieve that Cardholder from liability with respect thereto;
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, each card transaction must represent a valid obligation from the cardholder for the transaction amount. The amount charged cannot be subject to any disputes, set-offs, or counterclaims. The card transaction amount must be exclusively for merchandise or services (including taxes but excluding surcharges unless required by Card Organization Rules) that the Even Hotels franchisee sells, leases, or rents as part of their business. Unless expressly authorized for delayed delivery or advance deposits, the merchandise or service must be delivered or performed simultaneously with the card transaction.
Furthermore, the Even Hotels franchisee must not have any knowledge or notice of facts indicating that the card transaction is fraudulent or unauthorized. The franchisee must ensure that each card transaction complies with the terms and conditions outlined in the agreement, Card Organization Rules, the Your Payments Acceptance Guide, and applicable laws. Each sales draft should be free of unauthorized alterations, and the franchisee should complete only one card transaction per sale.
In essence, Even Hotels franchisees are permitted to use card transaction amounts specifically for legitimate sales of goods or services provided at the time of the transaction, ensuring compliance with all relevant rules and regulations to prevent fraud and disputes. The franchisee must operate their Even Hotels location in good standing and adhere to all disclosed business practices and service standards.