Under what circumstances can either party terminate the Even Hotels agreement before its scheduled expiration date?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.1 This Agreement may be terminated before the scheduled expiration date only in the following circumstances: (i) either party may terminate the Agreement if the other party fails to comply with a material term or condition of the Agreement and does not remedy the failure within 60 days after receiving written notice specifying the non-compliance; (ii) Company may terminate the Agreement if at any time during the Term the beverage marketing agreement between Company and Six Continents Hotels, Inc. is terminated.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, there are specific conditions under which the agreement can be terminated early. Either party can terminate the agreement if the other fails to meet a significant requirement and does not fix the issue within 60 days of receiving a written notice describing the problem.
Additionally, the agreement can be terminated if a beverage marketing agreement between the company and Six Continents Hotels, Inc. is terminated. This highlights a dependency on external agreements that could impact the franchise agreement.
These termination conditions are important for a prospective Even Hotels franchisee to understand, as they outline the circumstances that could lead to an early end to their franchise agreement and the potential loss of their investment. It is also important to note that upon termination, the franchisee may be required to make equipment available for pickup and may be subject to certain costs associated with equipment removal.