Under what conditions can an Even Hotels franchisee apply for an extension of construction deadlines?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
You may apply for an extension of the construction commencement or completion deadlines. Holiday will consider various factors which may influence your extension request, including the ability to obtain financing or building permits, zoning and local ordinances, weather conditions, shortages or delayed installation of equipment, fixtures and signs. Holiday's approval of extension requests is not automatic. You will be responsible for any expenses incurred by Holiday in processing the extension request. As Note 7 to Item 6 describes, there is a fee for extending these deadlines.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a franchisee may apply for an extension of the construction commencement or completion deadlines. Holiday will consider various factors that may influence the extension request. These factors include the ability to obtain financing or building permits, zoning and local ordinances, weather conditions, and shortages or delayed installation of equipment, fixtures, and signs. However, Even Hotels' approval of extension requests is not automatic.
It's important to note that the franchisee will be responsible for any expenses incurred by Holiday in processing the extension request. Additionally, as noted in Item 6, there is a fee for extending these deadlines. This means that franchisees need to factor in potential costs associated with seeking an extension, both in terms of direct fees and any expenses Holiday incurs while processing the request.
This policy is fairly standard in the franchise industry, as construction delays are common and can arise from a variety of unforeseen circumstances. However, the fact that Even Hotels does not automatically approve extension requests and requires the franchisee to cover the associated expenses highlights the importance of careful planning and proactive management of the construction process. Franchisees should ensure they have robust contingency plans in place to mitigate potential delays and minimize the need for extensions.
Prospective Even Hotels franchisees should carefully review Item 6 of the FDD to understand the specific fees associated with extending construction deadlines. They should also inquire about Holiday's typical approval process for extension requests and the types of documentation or evidence that are most likely to support a successful application. Understanding these details can help franchisees better manage their construction timelines and avoid unexpected costs.