Under what conditions can AT&T terminate all services under the Participation Agreement for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- If the Customer Agreement ceases to be in effect, AT&T may at is option terminate all Services under this Participation Agreement.
- (a) Material Breach.
If either party fails to perform or observe any material warranty, representation, term or condition of this Agreement, including non-payment of charges, and such failure continues unremedied for 30 days after receipt of notice, the aggrieved party may terminate (and AT&T may suspend and later terminate) the affected Service Components and, if the breach materially and adversely affects the entire Agreement, terminate (and AT&T may suspend and later terminate) the entire Agreement.
- (c) Fraud or Abuse.
AT&T may terminate or suspend an affected Service or Service Component and, if the activity materially and adversely affects the entire Agreement, terminate or suspend the entire Agreement, immediately by providing Eligible Participant with as much advance notice as is reasonably practicable under the circumstances if Eligible Participant, in the course of breaching the Agreement: (i) commits a fraud upon AT&T; (ii) uses the Service to commit a fraud upon another party; (iii) unlawfully uses the Service; (iv) abuses or misuses AT&T's network or Service; or (v) interferes with another customer's use of AT&T's network or services. If the options described in Section 7.3 (Infringing Services) are not reasonably available, AT&T may at its option terminate the affected Services or Service Components without liability other than as stated in Section 7.1 (AT&T's Obligations).
- (e) Hazardous Materials.
If AT&T encounters any Hazardous Materials at the Site, AT&T may terminate the affected Services or Service Components or may suspend performance until Eligible Participant removes and remediates the Hazardous Materials at Eligible Participant's expense in accordance with applicable law.
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- Eligible Participant hereby represents and warrants that, upon execution of this Participation Agreement, it is a Property under the Customer. If Customer notifies AT&T that an Eligible Participant has ceased to be a Property, AT&T shall notify the Eligible Participant that this Participation Agreement is terminated.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, AT&T can terminate all services under the Participation Agreement under several conditions. If the Customer Agreement between AT&T and IHG ceases to be in effect, AT&T has the option to terminate all services under the Participation Agreement. Additionally, if an Even Hotels property ceases to be a property under the Customer, AT&T will notify the Eligible Participant that the Participation Agreement is terminated.
AT&T can also terminate the agreement if the Eligible Participant fails to perform or observe any material term or condition of the agreement, including non-payment of charges, and this failure continues for 30 days after receiving notice. In cases of fraud or abuse, AT&T may immediately terminate or suspend services if the Eligible Participant commits fraud upon AT&T or another party, unlawfully uses the service, abuses AT&T's network, or interferes with another customer's use of AT&T's services.
Furthermore, AT&T can terminate affected services or service components if options described in Section 7.3 (Infringing Services) are not reasonably available. AT&T may also terminate affected services or suspend performance if it encounters any Hazardous Materials at the site until the Eligible Participant removes and remediates the hazardous materials at their own expense. These termination conditions are important for a prospective franchisee to understand, as they outline the circumstances under which AT&T can discontinue providing services, potentially impacting the hotel's operations.