Under what conditions does the California addendum in the Even Hotels FDD apply?

According to the 2025 Even Hotels Franchise Disclosure Document, the California addendum applies specifically if the California Franchise Investment Law and the California Franchise Relations Act would apply on their own. This means that even if Holiday Hospitality Franchising, LLC (the franchisor) did not provide the addendum, the laws would still be in effect.

This condition ensures that Even Hotels franchisees in California receive the full protection of California's franchise laws. These laws cover various aspects of the franchise relationship, including termination, non-renewal, transfer, and modifications to the franchise agreement. The addendum serves to clarify and reinforce these protections, ensuring that the franchisee's rights under California law are upheld.

For a prospective Even Hotels franchisee in California, this means that certain provisions in the standard franchise agreement that might conflict with California law are superseded by the state's regulations. For example, the addendum addresses issues such as the enforceability of liquidated damages clauses, application of Georgia law, and venue limitations, ensuring that California law prevails in these matters. This provides a more predictable and legally sound framework for the franchisee's business operations within the state.