Under what conditions can the Company offset funds due to the Even Hotels Customer?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
If any Hotel fails to comply with any terms of this Agreement applicable to such Hotel (including any applicable terms of the Equipment Lease), Customer will forfeit and not be entitled to any funding in respect of such Hotel for the period of noncompliance and Company may refuse to sell, or may limit the quantity of Beverages sold, to such Hotel.
In the event the Hotel has not cured any non-compliance within 30 days from receipt of written notice of noncompliance from Company, all funding in respect of such Hotel for the then-current Year will be forfeited, and Company will have the option to terminate this program with respect to such Hotel on 30 days' additional written notice.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, if any Even Hotels location fails to comply with the terms of the agreement, the Customer will forfeit any funding related to that hotel for the period of noncompliance. The Company may also refuse to sell or limit the quantity of beverages sold to the non-compliant hotel.
If the non-compliance is not resolved within 30 days of written notice from the Company, all funding for that hotel for the current year will be forfeited. Additionally, Even Hotels has the option to terminate the program with respect to that specific hotel after providing an additional 30 days' written notice.
This policy creates a strong incentive for Even Hotels franchisees to adhere to the terms of their agreements. Failure to comply can result in immediate loss of funding and potential termination of the program, impacting the hotel's financial performance and relationship with the Company. Prospective franchisees should carefully review the agreement terms to ensure they can meet all requirements and avoid potential penalties.