Under what conditions can the Company offset funds due to the Customer in the Even Hotels agreement?

According to Even Hotels' 2025 Franchise Disclosure Document, the company has the right to offset funds due to the customer under specific circumstances. If the customer owes any amounts to the company or its bottler under the current agreement or any other agreement, Even Hotels, in addition to any other remedies available, can utilize the funds owed to the customer to offset the amounts due to the company.

This provision in the franchise agreement allows Even Hotels to protect its financial interests by ensuring that any outstanding debts owed by the franchisee are settled. This is a fairly standard practice in franchising, as it provides a mechanism for the franchisor to recover funds without resorting to legal action in every case.

For a prospective Even Hotels franchisee, this means that any financial obligations to the company or its bottlers must be carefully managed to avoid potential offsets. It is crucial to maintain good financial standing and promptly address any outstanding invoices or debts to prevent Even Hotels from exercising its right to offset funds. Franchisees should ensure they understand all agreements with Even Hotels and its bottlers to avoid any unexpected financial repercussions.