Is there a Guaranty of License Agreement included in the Even Hotels license agreement?

According to Even Hotels's 2025 Franchise Disclosure Document, the License Agreement includes a Guaranty of License Agreement. Exhibit B to the FDD includes the Even Hotels License Agreement, Guaranty of License Agreement, and any applicable State Addenda. This indicates that a separate guaranty agreement is part of the overall licensing package.

The inclusion of a Guaranty of License Agreement means that a third party (guarantor) may be required to guarantee the franchisee's obligations under the License Agreement. This is a common practice in franchising, especially when the franchisee is a corporate entity or has limited operating history. The guarantor typically agrees to be responsible for the franchisee's financial and operational obligations if the franchisee defaults.

Prospective Even Hotels franchisees should carefully review the Guaranty of License Agreement to understand the scope of the guarantor's obligations and potential liabilities. They should also determine who is eligible to act as a guarantor and what financial information or security may be required from the guarantor. Understanding these requirements is crucial for ensuring compliance with the franchise agreement and avoiding potential disputes with Even Hotels.