Under what condition can AT&T require Even Hotels or its affiliates to tender a deposit?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
AT&T may require Eligible Participant or its Affiliates to tender a deposit if AT&T determines, in its reasonable judgment, that Eligible Participant or its Affiliates are not creditworthy, and AT&T may apply such deposit to any charges owed.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, AT&T has the right to request a deposit from Even Hotels or its affiliates under specific circumstances. AT&T can require a deposit if it determines, based on its reasonable judgment, that Even Hotels or its affiliates are not creditworthy. This determination is at the discretion of AT&T.
If AT&T deems Even Hotels or its affiliates not creditworthy and requires a deposit, AT&T is further entitled to utilize this deposit to offset any outstanding charges owed by Even Hotels or its affiliates. This means that if Even Hotels or its affiliates fail to pay their bills, AT&T can use the deposit to cover those costs.
This condition is important for a prospective Even Hotels franchisee to understand, as it highlights the potential for AT&T to demand a deposit based on their assessment of creditworthiness. Franchisees should maintain good credit standing to avoid such requirements, as well as understand the implications of potentially losing the deposit to cover unpaid charges.