Does Even Hotels provide financial performance projections to potential licensees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
In order to fully understand the information set forth above, you must understand their limitations.
To begin with, it is vital that you understand that the information set forth in this Item 19 is not meant in any fashion to constitute projections of your performance. To the contrary, we do not furnish - - or authorize any of our or our affiliates' officers, employees or salespersons to furnish - - any oral or written economic projections for any licensed hotel, and you are specifically warned that should you nevertheless be furnished with any such projections, you must not rely on them in any fashion in determining whether to become our licensee. The information set forth above conveys only historic performance information for Mature Hotels for the fiscal year 2024.
Source: Item 19 — Financial Performance Representations (FDD pages 90–94)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Even Hotels does not provide financial performance projections to potential licensees. The FDD clarifies that the historic performance information provided for Mature Hotels operating in the United States for the 2024 fiscal year is not intended to be a projection of future performance. Mature Hotels are defined as those open for at least two full years as of December 31, 2024, without significant rooms being out of order, and in compliance with their license or management agreements. As of December 31, 2024, 16 of the 22 Even Hotels in the United States qualified as Mature Hotels.
The FDD explicitly warns potential franchisees not to rely on any oral or written economic projections, should they be furnished, in deciding whether to become a licensee. The document states that the information provided is limited to historic performance data for Mature Hotels. Even Hotels emphasizes that a new licensee's financial results will likely differ from the historic results presented, and these differences may be material. Factors influencing a hotel's performance include competition, the presence of chain affiliations, the age and customer base of competitors, facilities and amenities, local demand for accommodations, business travel, location relative to airports and business districts, and overall economic conditions.
Even Hotels will provide methodologies, databases, and assumptions used to arrive at the information contained in the charts upon request. Written substantiation for the financial performance representation is also available upon reasonable request. However, Even Hotels is not obligated to disclose specific information for any particular hotel. The FDD also notes that information concerning licensed and managed hotels is based on unaudited data submitted by licensees and hotel managers, which neither Even Hotels nor its affiliates have independently verified. The only information Even Hotels will furnish regarding hotel performance is the historic data set forth in Item 19 and any supplemental financial performance representation directed to a particular location or circumstance, which they may elect to furnish separately.