Under what conditions can Holiday terminate the Even Hotels license agreement with cause?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
c. Requirements for you to Renew or Extend | N/A | The License does not provide for renewal or term extensions. If we agree to Re-license, you may be asked to sign a contract with materially different terms and conditions than your original contract. | | d. Termination by you | N/A | | | e. Termination by Holiday without | License: N/A | | | Cause | MTSS: 10.1 | | | f. Termination by Holiday with | License: 11.B, | Holiday may terminate with cause. | | Cause (Notes 1 and 2) | 11.C, 13.J and Attachment "B" MTSS: 10.3 | You pay liquidated damages if Holiday terminates under Paragraphs 12.1, 11.C or 13.J. See Note 1 and 2 | | g. "Cause" defined – defaults which can be cured (Note 2) | License: 11.B and 13.J | Any default other than those listed in "h" below. See Note 2. | | h. "Cause" defined – non-curable defaults | License: 10, 11.C & Attachment "B" | Non-curable defaults: bankruptcy; non dismissed judgments exceeding $50,000; trademark misuse, or if you contest Holiday's ownership of its trademarks; loss of possession of the property; dissolution of the licensee entity; failure to identify or operate the Hotel as a Holiday brand Hotel; violation of licensor's proprietary rights; unapproved transfers; conviction of a felony; false books and records; failure to comply with safety, security or privacy of guests or reputation standards; condemnation or casualty occurs and Hotel does not reopen when | | Provision | Section In Agreement | Summary | |-----------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 87–90)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Holiday, the licensor, can terminate the license agreement with cause. The FDD outlines two categories of defaults that constitute cause for termination: defaults that can be cured and non-curable defaults.
Defaults that can be cured are any defaults not specifically listed as non-curable. Non-curable defaults, which allow Holiday to terminate the Even Hotels license agreement immediately, include events such as bankruptcy, judgments exceeding $50,000 that are not dismissed, trademark misuse, contesting Holiday's ownership of its trademarks, loss of possession of the property, dissolution of the licensee entity, and failure to identify or operate the hotel as an Even Hotels branded hotel.
Additional non-curable defaults include violation of the licensor's proprietary rights, unapproved transfers of the license, conviction of a felony, maintaining false books and records, failure to comply with safety, security, or privacy standards for guests, failure to meet reputation standards, failure to reopen the hotel after condemnation or casualty, unauthorized use of the brand's Marks, and refusal to allow inspections or audits by Holiday. These conditions provide Even Hotels with broad authority to terminate the license agreement if the franchisee fails to meet the outlined obligations and standards.