Who is responsible for obtaining adequate financing for all expenses related to the development, opening, and operation of an Even Hotels franchise?

According to Even Hotels' 2025 Franchise Disclosure Document, it is the franchisee's sole responsibility to secure adequate financing for all expenses associated with the development, opening, and operation of their Even Hotels location. This encompasses all costs from initial construction and pre-opening activities to ongoing operational expenses.

While Even Hotels does not offer a formal financing program, the FDD indicates that Holiday, SCH, or its affiliate, General Innkeeping Acceptance Corporation (GIAC), may, on a case-by-case basis, furnish loans or guaranties to licensees. However, these potential loans or guaranties are subject to individually negotiated terms and conditions and are contingent upon approval by the Executive Committee and Board of Directors. This means that franchisees cannot rely on receiving financial assistance from Even Hotels or its affiliates and must proactively seek funding from other sources.

This requirement aligns with common practices in the franchise industry, where franchisees typically bear the responsibility for securing their own financing through banks, private investors, or other lending institutions. Prospective Even Hotels franchisees should carefully assess their financial resources and develop a comprehensive financing plan to cover all anticipated expenses. It is crucial to have a solid financial foundation to successfully launch and sustain an Even Hotels franchise.