According to the Even Hotels FDD, what is included in the definition of 'Hardware'?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
"Participation Agreement" means a joinder, subscription, or participation agreement executed between Licensee and a Service Provider to establish terms governing Hardware, Software, or Services provided by the Service Provider to Licensee in connection with an Enabling Agreement.
"Services" means any services enabled under this Master Technology Schedule, including the Core Services, Additional Required Services, and Optional Services.
"Software" means utilities, operating systems, scripts, applications, system updates, addons, or other materials that can be installed on or used in connection with Hardware, whether in binary machine code or human-readable source code form.
"Tax" means any federal, national, state, local, or non-U.S. income, gross receipts, franchise, sales, use, transfer, value-added, excise, customs, duties, property, withholding or any other tax, charge, or fee, including any interest, penalties, or other additions to tax, imposed by a governmental authority.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, 'Hardware' is not explicitly defined within the provided excerpts. However, the document does refer to 'Hardware' in the context of technology purchases, site preparation, installation, and wide area networks (WAN). Licensees are required to acquire specified 'Hardware' and 'Software' at least 120 days before the hotel opening date, according to Attachment 4-3 to Schedule 4 Hotel Opening Consultation Services Supplemental Terms.
The FDD also mentions that franchisees are responsible for preparing the site for 'Hardware' installation, including electrical connections, power outlets, and air conditioning. IHG may install a wide area network (WAN) and WAN 'Hardware' for the hotel's use in communicating with IHG's systems, and the franchisee will not acquire any ownership interest in this 'Hardware'.
While the FDD excerpts do not provide a direct definition of 'Hardware', it is clear that 'Hardware' includes items related to technology and communication systems necessary for the operation of the Even Hotels franchise. To gain a comprehensive understanding of what constitutes 'Hardware' under the franchise agreement, a prospective franchisee should ask the franchisor for a detailed list or description of the 'Hardware' required, including the Minimum Configuration standards.