Which sections of the Even Hotels franchise agreement survive the expiration or termination of the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a termination or expiration of the License Agreement, SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of a "Change of Control" (defined as a change in total or complete ownership of the Hotel and/or in an event when new partial or majority ownership of the Hotel , whether by merger, investment, or acquisition, results in involvement of another party to the License Agreement that places SCH in a disadvantage if the existing terms of this Agreement are maintained), SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of such termination by SCH only Sections 2, 3, 4, 7, 8, 9, 10, 11, 13, 14 and 18 herein shall survive such termination.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, in the event of termination or expiration of the License Agreement, Sections 2, 3, 4, 7, 8, 9, 10, 11, 13, 14 and 18 of the agreement between SCH and the client will survive such termination, but only if SCH elects to terminate the agreement immediately upon written notice to the client. This condition is triggered specifically by the termination or expiration of the License Agreement or a Change of Control event.
This means that certain obligations and rights outlined in those sections will continue to apply even after the franchise agreement ends. These surviving sections likely cover critical aspects such as payment obligations for services already rendered, confidentiality, intellectual property protection, indemnification, dispute resolution, and other clauses that need to remain in effect to protect the interests of both Even Hotels and the franchisee post-termination.
For a prospective Even Hotels franchisee, this highlights the importance of carefully reviewing these specific sections of the agreement to understand the long-term implications of termination or expiration. Franchisees should seek legal counsel to fully grasp their responsibilities and rights, even after the formal franchise relationship concludes. Understanding these surviving obligations is crucial for managing potential liabilities and ensuring a smooth transition, whether the termination is initiated by the franchisee or Even Hotels.