Does the Even Hotels agreement define what constitutes 'lack of trademark conformity'?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Customer nor Company will make use of the other's trademarks or logos (either alone or in conjunction with their or another party's trademarks or logos) without the prior written consent of that party, and Customer will not make use of any of the Bottler's trademarks or logos (either alone or in conjunction with their or another party's trademarks or logos) without the prior written consent of the Bottler, and all use of the other party's trademarks will inure to the benefit of trademark owner. For purposes of this Agreement, Company's and Customer's trademarks include trademarks owned, licensed to or controlled by an entity in which Company or Customer, respectively, has a 50% or more ownership interest. Each Party agrees that its approval will not be withheld or delayed unless (i) Customer determines that a Customer Mark has been used incorrectly for technical reasons (i.e., lack of trademark conformity) or (ii) Customer reasonably determines that the proposed activity or use would reflect negatively on Customer or the Participating System Hotels.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
The 2025 Even Hotels Franchise Disclosure Document (FDD) does not explicitly define what constitutes "lack of trademark conformity." However, it does address the use of trademarks and logos. Specifically, it states that neither the customer (franchisee) nor the company (franchisor) can use each other's trademarks without prior written consent. The franchisee also cannot use any of the bottler's trademarks without their consent. Any use of trademarks will benefit the trademark owner.
The agreement indicates that approval for trademark usage can be withheld if the customer determines that a Customer Mark has been used incorrectly for technical reasons, described as "lack of trademark conformity." It also allows the customer to withhold approval if the proposed activity or use would reflect negatively on the Customer or the Participating System Hotels.
For a prospective Even Hotels franchisee, this means that while the agreement doesn't provide a specific definition, it implies that "lack of trademark conformity" refers to incorrect or unauthorized use of the brand's trademarks. It would be prudent for a potential franchisee to seek clarification from Even Hotels on what specific actions or omissions would be considered a breach of trademark conformity to avoid potential disputes or penalties.