Is Even Hotels responsible for ensuring that franchisees can procure the necessary licenses, permits, certificates, or other governmental authorizations?

According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are solely responsible for securing the necessary licenses, permits, certificates, and other governmental authorizations required to operate an Even Hotels franchise. Even Hotels explicitly states that it does not guarantee the franchisee's ability to obtain any required license, permit, certificate, or other governmental authorization. This responsibility extends to compliance with all applicable federal, state, and local laws affecting hotel businesses, including those related to zoning and construction, public accommodations, accessibility for persons with disabilities, service of alcoholic beverages, health and safety, food storage and preparation, labor, data security, and privacy.

This allocation of responsibility is typical in the franchise industry, where franchisees are generally considered independent business owners. Franchisees are expected to understand and comply with all legal and regulatory requirements applicable to their specific location and business operations. The FDD emphasizes that these laws vary from jurisdiction to jurisdiction, further underscoring the importance of the franchisee's independent due diligence.

For a prospective Even Hotels franchisee, this means that it is crucial to thoroughly research and understand all applicable laws and regulations in the relevant jurisdiction before investing in the franchise. This includes consulting with legal and regulatory experts to ensure full compliance. Failure to obtain the necessary licenses and permits can result in significant penalties, including fines, business closures, and legal liabilities. Therefore, franchisees must proactively manage this aspect of their business to avoid potential disruptions and financial losses.