What is the requirement for statements made on the application for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
-
- Section 13.I of the License is amended to include the following: "The general release language contained in the License shall not relieve IHG or any other person, directly or indirectly, from liability imposed by the laws concerning franchising in the State of Maryland."
-
- The provisions of the License which permits all suits to be filed in Georgia is hereby deleted for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.
-
- Any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three years after the grant of the License.
-
- Pursuant to the Interpretive Opinion "Adopting NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments" dated January 23, 2023 (the "Interpretive Opinion"), issued by the State of Maryland Office of the Attorney General Securities Division (the "Division"), the Division requires franchisors selling franchises that are subject to the Maryland Franchise Registration and Disclosure Law to include the following statement in their franchise agreements: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." Accordingly, any statement, questionnaire, or acknowledgment in the License Agreement that is not permitted under the Interpretive Opinion is deleted in its entirety and shall have no force or effect.
| Net minimum lease payments | 3,191,328 |
|---|---|
| Less amount representing interest | (2,930,124) |
| Present value of net minimum lease payments | $ 261,204 |
IHG:
HOLIDAY HOSPITALITY FRANCHISING, LLC
| 2024 | 2023 |
|---|
Amendment To The Holiday Hospitality Franchising, LLC Even Hotels License Agreement Pursuant To The North Dakota Investment Franchise Law
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Even Hotel issued in the State of North Dakota:
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the requirements for statements made on the application for a franchise vary by state. In Maryland, any statement, questionnaire, or acknowledgment signed by a franchisee cannot waive claims under state franchise law, including fraud, or disclaim reliance on statements made by the franchisor. This provision overrides any conflicting terms in the franchise agreement. In Washington, a release or waiver of rights executed by a franchisee will not include rights under the Washington Franchise Protection Act except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel. Provisions that unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
These stipulations protect franchisees by ensuring they retain their rights under state laws, preventing franchisors from using standardized documents to circumvent these protections. The Maryland amendment specifically addresses concerns about franchisors potentially including clauses that could be interpreted as waivers of franchisee rights, particularly regarding fraud or misrepresentation. The Washington stipulations ensure franchisees are aware of their rights under the Washington Franchise Protection Act.
Prospective Even Hotels franchisees should carefully review these state-specific amendments and understand their implications. It is crucial to consult with an attorney to ensure full comprehension of their rights and obligations under the franchise agreement, particularly in states like Maryland and Washington with specific protections. Franchisees should also be aware that these amendments may supersede conflicting terms in the standard franchise agreement, providing additional safeguards.