Regarding the Even Hotels franchise agreement, what is the explicit understanding between the Customer and Company concerning third-party rights?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
-
- THIRD PARTY BENEFICIARIES. Customer and Company hereby expressly acknowledge and agree that this Agreement is for the sole exclusive benefit of the parties hereto and the Hotels, and no other third party is intended to or will have any rights hereunder, except that Customer and Company recognize and acknowledge that the Bottlers are third party beneficiaries of this Agreement.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the franchise agreement explicitly states that it is exclusively for the benefit of the parties involved, namely the Customer and the Company, and the Hotels. It is expressly acknowledged that no other third party is intended to, nor will have, any rights under the agreement, except that Customer and Company recognize and acknowledge that the Bottlers are third party beneficiaries of this Agreement.
This means that, generally, only Even Hotels and the franchisee (referred to as Customer and Company in this section) can directly benefit from or enforce the terms of the franchise agreement. This clause aims to prevent third parties from claiming rights or benefits under the agreement. However, there is an exception for Bottlers, who are specifically identified as third-party beneficiaries, granting them certain rights within the agreement.
For a prospective Even Hotels franchisee, this clause clarifies that the agreement primarily governs the relationship between the franchisee and Even Hotels. While third parties generally cannot claim rights under the agreement, franchisees should be aware of the exception for Bottlers and understand the implications of this exception for their operations. Franchisees should seek clarification on the specific rights and obligations pertaining to Bottlers to ensure compliance and avoid potential disputes.