Who is responsible for the costs associated with the review, approval, certification, and registration of Merchant Providers for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for all our costs and expenses associated with our review, approval, certification (and recertification as may be required by us or the Card Organization Rules) and registration of any Merchant Providers.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, the franchisee is responsible for covering all costs and expenses associated with the review, approval, certification (including recertification), and registration of any Merchant Providers by Even Hotels. This includes compliance with registration processes, site inspections, background investigations, and providing financial statements or other information required by Even Hotels or a Card Organization.
This means that as an Even Hotels franchisee, you will need to budget for these potential costs. The FDD does not provide an estimate of how much these costs could be, but it is important to factor them into your overall investment. Merchant Providers are third-party companies that process credit and debit card transactions for your hotel. Even Hotels needs to approve and register these providers to ensure they meet certain data security standards and comply with Card Organization Rules.
The franchisee must ensure that both they and their Merchant Providers comply with the registration process, which may involve site inspections, background checks, and providing financial statements. They must also comply with periodic reporting required by a Card Organization and all applicable Card Organization Rules, including those related to Cardholder data security. The franchisee can only allow Merchant Providers access to Cardholder data for authorized purposes that align with Card Organization Rules.
It is important for a prospective Even Hotels franchisee to discuss these potential costs with Even Hotels during their due diligence. Understanding the scope of these expenses will help in accurately forecasting the financial performance of the franchise. Additionally, franchisees should inquire about the specific data security standards and Card Organization Rules that apply to their Merchant Providers to ensure compliance and avoid potential penalties.