Under what conditions will Even Hotels not be obligated to settle a card transaction with a franchisee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.5. Hotel agrees that FreedomPay shall have no liability or obligation to Hotel for any transactions not submitted or reported to FreedomPay for settlement within sixty (60) days after the actual date of the transaction.
For transactions submitted or reported after such time limit, FreedomPay will attempt to settle such transactions if the data is available, but FreedomPay will have no liability to Hotel if it is unable to settle such transactions.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, FreedomPay, the third-party payment processor, has specific conditions under which it will not be liable or obligated to settle card transactions for an Even Hotels franchisee. If a transaction is not submitted or reported to FreedomPay for settlement within sixty days after the transaction date, FreedomPay has no liability to the franchisee.
Even if the transaction is submitted after this 60-day window, FreedomPay may attempt to settle the transaction if the data is available. However, Even Hotels franchisees should be aware that FreedomPay is not obligated to do so and bears no liability if it cannot settle the transaction.
This stipulation places the onus on the Even Hotels franchisee to ensure timely submission of transaction data to FreedomPay. Failure to comply with this timeframe could result in the franchisee not receiving payment for the transaction, representing a direct financial risk. Franchisees should implement internal controls and processes to guarantee that all card transactions are reported within the stipulated 60-day period to avoid potential losses.