Under what circumstances can Even Hotels change processing timing or suspend payments to a franchisee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 When the Agreement Takes Effect. The Agreement becomes effective only when approved by our Credit Department ("Effective Date").
We reserve the right to immediately suspend or terminate your account and the Agreement if you fail to meet our credit policies even if your account has been activated to submit transactions prior to your approval by our Credit Department.
- 12.3 Events of Default.
Each event set forth below is an "Event of Default":
(d) Irregular Card sales by you, excessive Chargebacks, or any other circumstances which, in our sole discretion, may increase our exposure for your Chargebacks or otherwise present a financial or security risk to us.
(e) The occurrence of a Compromised Data Event (with respect to you) or a Data Security Event (with respect to us).
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the company reserves the right to immediately suspend or terminate a franchisee's account and agreement under specific credit-related circumstances.
Specifically, Even Hotels can take such action if a franchisee fails to meet the company's credit policies, even if the account had been previously activated for submitting transactions before final credit department approval. This implies that initial activation does not guarantee continued operation if creditworthiness is later found to be insufficient.
Additionally, irregular card sales, excessive chargebacks, or any other circumstances that, in Even Hotels' sole discretion, increase their exposure for a franchisee's chargebacks or present a financial or security risk can lead to account suspension or termination. This clause grants Even Hotels broad discretion based on their assessment of financial risk. Furthermore, the occurrence of a Compromised Data Event related to the franchisee also constitutes grounds for immediate suspension or termination.
These provisions highlight the importance of maintaining strong financial health and security practices for Even Hotels franchisees to avoid potential disruptions to their operations and agreements.