Regarding the Even Hotels agreement, when do the signatures of the Processor and Bank become effective?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
No alterations or changes to the Agreement will be accepted; any alterations or changes made are null and void and have no force or effect. Processor's and Bank's signatures are effective as of the date Client signs this Addendum.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the signatures of the Processor (FDS Holdings, Inc.) and the Bank (Bank of America, N.A.) on the agreement become effective on the date the Client (franchisee) signs the addendum. This is explicitly stated within the context of an agreement where no alterations or changes are accepted, ensuring that the terms agreed upon at signing are final and binding. Any modifications made would be considered null and void.
This clause is important for a prospective Even Hotels franchisee because it clarifies the point at which the agreement with third-party service providers becomes legally binding. It ensures that once the franchisee signs the addendum, the Processor and Bank are also bound by the agreement, preventing any potential disputes regarding the effective date of the agreement. This provides a clear timeline and reduces ambiguity about when the franchisee can expect the services outlined in the agreement to commence.
It is essential for the franchisee to understand that the effective date is tied to their signature, emphasizing the importance of carefully reviewing all terms and conditions before signing. This also means that Even Hotels franchisees should ensure that all parties involved (themselves, the Processor, and the Bank) have a fully executed copy of the agreement to avoid any future discrepancies. This immediate effectiveness promotes transparency and accountability among all parties involved in the agreement.