Under what conditions related to termination of service or service components will an Even Hotels Eligible Participant NOT be liable for termination charges?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (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.
- (c) In the event Eligible Participant terminates the Managed Fortinet Solution at any given Site after Cutover and prior to the end of the Minimum Payment Period for any reason other than for AT&T's material breach, Eligible Participant must provide AT&T at least ninety (90) days' prior written notice and is responsible to pay for all Services rendered, expenses incurred hereunder, termination charges equal to the total Monthly Recurring Charges for the AT&T Equipment and AT&T MSS and Managed Fortinet Solution and for any applicable charges associated with early termination multiplied by the number of months remaining in the Minimum Payment Period, at the time of termination.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an Eligible Participant, such as an Even Hotels franchisee, will not be responsible for termination charges under specific circumstances related to the AT&T Managed Fortinet Solution.
Specifically, the franchisee will not be liable for termination charges if they terminate the agreement or a service/service component due to cause, or if AT&T terminates a service or service component for reasons other than cause. This means that if AT&T breaches the agreement, or if the franchisee has a valid reason for ending the service, termination fees will not apply.
However, if the franchisee terminates the Managed Fortinet Solution after the Cutover (the point at which the solution is fully implemented and operational) but before the end of the Minimum Payment Period for reasons other than AT&T's material breach, the franchisee is responsible for significant termination charges. These charges include payment for all services rendered, expenses incurred, and termination fees equal to the total Monthly Recurring Charges for the AT&T Equipment, AT&T MSS, and Managed Fortinet Solution, along with any applicable early termination charges, multiplied by the number of months remaining in the Minimum Payment Period. This highlights the importance of carefully evaluating the terms and conditions before agreeing to the Managed Fortinet Solution to avoid potentially substantial termination costs.