Under the Even Hotels Agreement, what events qualify as force majeure?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.5 Force Majeure.
No Party shall be liable for failing to fulfill any of its obligations under this Agreement due to acts of God, acts of war, epidemic, pandemic, failure of utility or communications infrastructure beyond that which would be avoided by reasonable use of back-up electricity supplies, or other causes beyond the reasonable control of the affected Party (as applicable).
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a force majeure event excuses either party from their obligations under the agreement if the failure to perform is caused by events beyond their control.
Specifically, the agreement identifies acts of God, acts of war, epidemic, pandemic, failure of utility or communications infrastructure beyond that which would be avoided by reasonable use of back-up electricity supplies, or other causes beyond the reasonable control of the affected Party as force majeure events. This means that if an Even Hotels franchisee is unable to fulfill their obligations due to one of these events, they may not be held liable for the non-performance.
However, it is important to note that this clause typically does not excuse payment obligations. The franchisee would still be responsible for payments owed to Even Hotels unless the inability to pay is directly caused by a force majeure event. It is also important to note that the specific terms and conditions of the force majeure clause can vary and should be carefully reviewed by a prospective franchisee.