Under the Even Hotels lease agreement, what is included in the definition of 'Equipment'?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Unless otherwise agreed in writing, the Equipment will also include, where applicable, all permanent merchandising, menu boards, refrigeration units, ice makers and water filtration equipment installed by Company on Equipment Lessee's premises.
Each piece of Equipment is leased commencing on its installation date (the "Commencement Date").
Equipment Lessee may request the removal of any Equipment upon thirty (30) days prior written notice to Company, and in addition, Company may remove any piece of Equipment for any reason upon thirty (30) days prior written notice to Customer.
Removal of Equipment will not affect the term of any agreement between the parties.
If this Lease is terminated with respect to any piece of Equipment for any reason, other than Company removing a piece of Equipment without cause under this section, prior to 100 months from the Commencement Date for that piece of Equipment, Equipment Lessee will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation, (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment.
Collectively, removal costs and items (i) and (ii) are referred to as "unbundling costs." The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been removed from Equipment Lessee's premises and will survive the expiration or termination of any agreement into which this Lease is incorporated.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the definition of 'Equipment' under the lease agreement includes permanent merchandising, menu boards, refrigeration units, ice makers, and water filtration equipment installed by the company on the franchisee's premises, unless otherwise agreed in writing.
This means that if Even Hotels installs items such as menu boards or ice makers in the hotel, these items are considered part of the leased equipment. As a franchisee, it's important to understand that these items remain the property of the company and are subject to the terms of the lease.
The document also specifies that each piece of equipment is leased starting from its installation date. The franchisee can request the removal of any equipment with 30 days' written notice, and Even Hotels can also remove equipment with the same notice period. However, if the lease is terminated for a piece of equipment before 100 months from its installation date, the franchisee may have to pay for the removal and remanufacturing costs, as well as the unamortized portion of installation and parts costs.