Does the Even Hotels agreement specify any requirements for the Company to obtain insurance?

According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee is required to maintain insurance coverage during the license term. The franchisee must adhere to the insurance requirements outlined in any lease or mortgage covering the hotel. Additionally, the franchisee must meet Even Hotels' specifications regarding the amount and type of coverage, as reasonably specified by IHG in writing from time to time. At a minimum, the franchisee must maintain insurance on the hotel underwritten by a reputable insurer approved by IHG.

This requirement ensures that the Even Hotels location is adequately protected against potential risks and liabilities. By complying with IHG's insurance specifications, the franchisee mitigates financial risks associated with property damage, liability claims, and other unforeseen events. The franchisor's approval of the insurer ensures that the insurance provider is reputable and capable of fulfilling its obligations.

The franchisee should carefully review the insurance requirements outlined in the franchise agreement and any related documents to ensure full compliance. It is important to understand the specific types and amounts of coverage required, as well as the criteria for an acceptable insurer. Failure to maintain adequate insurance coverage could result in a breach of the franchise agreement and potential financial losses for the franchisee.

It is common practice in the franchise industry for franchisors to require franchisees to maintain insurance coverage to protect both the franchisee's business and the franchisor's brand. The specific insurance requirements can vary depending on the nature of the business and the potential risks involved. Prospective Even Hotels franchisees should consult with an insurance professional to determine the appropriate level of coverage for their specific circumstances.