factual

Under what conditions can an Eligible Participant terminate a Service Component without liability for termination fees, shortfall charges or cancellation charges in the Even Hotels agreement?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

changes to non-stabilized pricing, changes required by governmental authority, or assessment of or changes to additional charges such as surcharges or taxes.

  • (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.
  • (d) Infringing 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.

8.3 Effect of Termination.

  • (a) Termination or suspension by either party of a Service or Service Component does not waive any other rights or remedies a party may have under this Agreement and will not affect the rights and obligations of the parties regarding any other Service or Service Component.
  • (b) If a Service or Service Component is terminated, Eligible Participant will pay all amounts incurred prior to the effective date of termination.

(U.S.)

(c) In the event Eligible Participant ceases to a Property, Eligible Participant and AT&T may enter into their own independent agreement for AT&T's products and/or services.

8.4 Termination Charges.

  • (a) If Eligible Participant terminates this Agreement or an affected Service or Service Component for cause in accordance with the Agreement or if AT&T terminates a Service or Service Component other than for cause, Eligible Participant will not be liable for the termination charges set forth in this Section 8.4.
  • (b) If Eligible Participant or AT&T terminates a Service or Service Component with fewer than forty-five (45) days prior to Cutover, Eligible Participant (i) will pay any pre-Cutover termination or cancellation charges set out in a Pricing Schedule or Service Publication, or (ii) in the absence of such specified charges, will reimburse AT&T for time and materials incurred prior to the effective date of termination, plus any third party charges resulting from the termination.

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to the 2025 Even Hotels Franchise Disclosure Document, an Eligible Participant, under certain conditions, can terminate a Service Component without incurring termination fees, shortfall charges, or cancellation charges.

Specifically, if AT&T revises a Service Publication that has a materially adverse impact on the Eligible Participant, and AT&T does not remedy the adverse impact within 30 days of receiving notice from the Eligible Participant, the Eligible Participant can terminate the affected Service Components by giving AT&T 30 days' notice. This notice must be given no later than 90 days after the Eligible Participant first learns of the revision to the Service Publication. However, materially adverse impacts do not include changes to non-stabilized pricing, changes required by governmental authority, or assessment of or changes to additional charges such as surcharges or taxes.

Additionally, if AT&T terminates a Service or Service Component for reasons other than cause, the Eligible Participant will not be liable for termination charges. Also, if the options described in Section 7.3 (Infringing Services) are not reasonably available, AT&T may terminate the affected Services or Service Components without liability other than as stated in Section 7.1 (AT&T's Obligations). 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 the affected Service Components and, if the breach materially and adversely affects the entire Agreement, terminate the entire Agreement.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.