What are the specific requirements for Even Hotels franchisees regarding Conveyed Transactions, particularly concerning agreements with Card Organizations or Issuers?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (c) Conveyed Transactions. The following terms apply to Conveyed Transactions: (a) Processor (not Bank) will provide an Authorization response to Authorization requests; (b) Processor and Bank do not have any responsibility or liability for funding, sponsoring, or settling Conveyed Transactions; (c) you must enter into, and comply with the terms of, a separate agreement with the Card Organization or Issuer that settles Conveyed Transactions ("Issuer Agreement"), and must pursue directly with such Card Organization or Issuer all related claims and disputes; (d) the Card Organization or Issuer that settles Conveyed Transactions may charge additional fees and amounts, for which you are exclusively responsible and liable; and (e) if the Issuer Agreement has been terminated, suspended, or is not in effect, Processor does not have any obligation to provide any Services for Conveyed Transactions.
- (d) Fees. You shall pay us the fees for Conveyed Transactions and other Non-Bank Services as set forth on your Application, MPA Addendum, Fee Schedule, and/or other Schedules, or as we otherwise disclose to you. Fees for Non-Bank Services may be charged and collected in any manner that other Servicers Fees, Third Party Based Fees, and other amounts may be charged and collected under the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees have specific responsibilities regarding 'Conveyed Transactions,' which involve direct agreements with card organizations or issuers. The franchisor, IHG, uses a third-party processor and a bank to handle card transactions. However, for Conveyed Transactions, the processor, not the bank, provides authorization responses.
Even Hotels franchisees are required to enter into a separate agreement, called an 'Issuer Agreement,' with the Card Organization or Issuer that settles Conveyed Transactions. The franchisee is responsible for complying with the terms of this Issuer Agreement and must directly handle all related claims and disputes with the Card Organization or Issuer. The Card Organization or Issuer may also charge additional fees for which the franchisee is exclusively responsible.
If the Issuer Agreement is terminated, suspended, or not in effect, the processor has no obligation to provide services for Conveyed Transactions. The franchisee is also obligated to pay fees for Conveyed Transactions and other Non-Bank Services as outlined in their Application, MPA Addendum, Fee Schedule, or other disclosures. These fees may be charged and collected in the same manner as other Servicers Fees, Third-Party Based Fees, and other amounts under the agreement.
In practical terms, this means that Even Hotels franchisees need to manage a direct relationship with card issuers for certain transactions, understand the associated fees, and ensure their Issuer Agreement remains active to avoid service disruptions. This arrangement places additional responsibility on the franchisee to manage these relationships and associated costs, as opposed to having all card processing handled centrally.