What remedies does the Company have upon the occurrence of a Default by the Even Hotels Equipment Lessee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- REMEDIES. Upon the occurrence of any Default or at any time thereafter during the continuance thereof, Company may terminate this Lease as to any or all items of Equipment, may enter Equipment Lessee's premises and retake possession of the Equipment at Equipment Lessee's expense, and will have all other remedies at law or in equity for breach of the Lease.
Equipment Lessee acknowledges that in the event of a breach of Sections 4 or 5 or a failure or refusal of Equipment Lessee to relinquish possession of the Equipment in breach of this section 12 following termination or Default, Company's damages may be difficult or impossible to ascertain, and Equipment Lessee therefore agrees that Company will have the right to seek an injunction in any court of competent jurisdiction restraining said breach and granting Company the right to immediate possession of the Equipment.
If Equipment Lessee acts in violation of the prohibitions described in Section 3 of this Lease, or is unable or unwilling to return the Equipment to Company in good working order, normal usage wear and tear excepted, at the expiration or termination of the Lease, Equipment Lessee will pay as liquidated damages the total of: (i) the amount of past-due lease payments, if any, discounted accelerated future lease payments, and the value of Company's residual interest in the Equipment, plus (ii) all tax indemnities associated with the Equipment to which Company would have been entitled if Equipment Lessee had fully performed this Lease, plus (iii) costs, interest, and attorneys' fees incurred by Company due to Equipment Lessee's violation of Section 3 or its failure to return the Equipment to Company, minus (iv) any proceeds or offset from the release or sale of the Equipment by Company.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, in the event of a default by the Equipment Lessee, the Company has several remedies available. The Company can terminate the lease for any or all equipment items. Additionally, Even Hotels has the right to enter the Equipment Lessee's premises and repossess the equipment, with the Equipment Lessee bearing the expense of this repossession. Beyond these specific actions, the Company retains all other remedies available under law or equity for breach of the lease agreement.
Furthermore, the Equipment Lessee acknowledges that if they breach Sections 4 or 5 of the lease, or if they fail to relinquish possession of the equipment after termination or default, determining the exact damages suffered by the Company may be difficult. Therefore, the Equipment Lessee agrees that the Company has the right to seek an injunction from a court with jurisdiction to prevent the breach and to ensure the Company's immediate repossession of the equipment.
In cases where the Equipment Lessee violates the prohibitions outlined in Section 3 of the lease or cannot return the equipment in good working order (normal wear and tear excepted) at the end of the lease, the Equipment Lessee will be liable for liquidated damages. These damages include the sum of any past-due lease payments, discounted accelerated future lease payments, the value of the Company's remaining interest in the equipment, all tax indemnities associated with the equipment that the Company would have been entitled to if the lease had been fully performed, and any costs, interest, and attorney's fees incurred by the Company due to the Equipment Lessee's violation of Section 3 or failure to return the equipment. This total will be reduced by any proceeds or offsets from the release or sale of the equipment by the Company.