What is the procedure for an Even Hotels franchisee to assign its Participation Agreement with AT&T?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
(a) Eligible Participant may, without AT&T's consent but upon notice to AT&T, assign in whole or relevant part its rights and obligations under this Agreement to an Eligible Participant Affiliate. AT&T may, without Eligible Participant's consent but upon notice to Eligible Participant, assign in whole or relevant part its rights and obligations under this Agreement to an AT&T Affiliate. In no other case may this Agreement be assigned by either party without the prior written consent of the other party (which consent will not be unreasonably withheld or delayed). In the case of any assignment, the assigning party shall remain financially responsible for the performance of the assigned obligations.
- (c) In countries where AT&T does not have an Affiliate to provide a Service.
AT&T may assign its rights and obligations related to such Service to a local service provider, but AT&T will remain responsible to Eligible Participant for such obligations r.
In certain countries, Eligible Participant may be required to contract directly with the local service provider, in which case, AT&T agrees to provide reasonable assistance to Eligible Participant in identifying and contracting with such local service provide.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an Eligible Participant, which refers to the franchisee, has specific guidelines for assigning the Managed Fortinet Participation Agreement with AT&T. The franchisee can assign its rights and obligations under the agreement in whole or in part to an Eligible Participant Affiliate without needing AT&T's consent, but they must provide notice to AT&T. AT&T also has the right to assign its rights and obligations to an AT&T Affiliate without the franchisee's consent, provided they give notice to the franchisee.
However, in any other situation, neither party can assign the agreement without getting prior written consent from the other party. This consent will not be unreasonably withheld or delayed. Even if an assignment is made, the assigning party remains financially responsible for fulfilling the obligations that have been assigned. This means that if the assignee fails to meet the obligations, the original assigning party is still liable.
In cases where AT&T does not have an affiliate to provide a service in a particular country, AT&T can assign its rights and obligations for that service to a local service provider. Despite this assignment, AT&T remains responsible to the Eligible Participant for those obligations. In some countries, the franchisee might need to contract directly with a local service provider. If this is the case, AT&T will offer reasonable assistance to the franchisee in finding and contracting with the local service provider.