When does the pricing agreement for bottled beverages at Even Hotels become effective?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will become effective when signed by an authorized representative of each of Company and Customer (the "Agreement Effective Date"). The "Term Effective Date" will be January 1, 2020, provided this Agreement is signed on or before September 30, 2020; or (ii) if this Agreement is signed after September 30, 2020, the Term Effective Date will be the first day of the month in which this Agreement is signed by Customer. The term of the Agreement will continue from the Term Effective Date until the expiration or earlier termination of the beverage marketing agreement between Company and Six Continents Hotels, Inc. dated January 1, 2020 (the "Term").
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the agreement regarding bottled beverage pricing becomes effective when authorized representatives from both the Company and the Customer (the franchisee) sign the agreement. This date is referred to as the "Agreement Effective Date."
The document specifies a "Term Effective Date" which dictates when the terms of the agreement actually begin. If the agreement is signed on or before September 30, 2020, the Term Effective Date is January 1, 2020. However, if the agreement is signed after September 30, 2020, the Term Effective Date will be the first day of the month in which the agreement is signed by the Customer.
This distinction between the Agreement Effective Date and the Term Effective Date is important for Even Hotels franchisees to understand. The Agreement Effective Date is simply the date of signing, while the Term Effective Date determines when the pricing and other terms of the beverage agreement actually take effect. The agreement's term continues until the expiration or earlier termination of the beverage marketing agreement between the Company and Six Continents Hotels, Inc., dated January 1, 2020.