Does the Even Hotels agreement specify whether the royalty-free license to use Customer's trademarks for promotions is perpetual?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- ADVERTISING, MARKETING RIGHTS.
6.1 Customer grants Company the exclusive rights to advertise, market and promote Beverages at the Hotels and/or in connection with the Hotels.
These rights include a Beverage-exclusive license to use, subject to Section 5 above, Customer's trademarks on a royalty free basis to promote Company's Beverages in promotions, including joint promotions with Company's other customers.
- 6.2 NO COMPETITIVE ADVERTISING. Except as otherwise permitted under the terms of this Agreement, Customer will not depict, advertise, promote or merchandise any Competitive Beverages anywhere in or in association with the Hotels.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the agreement grants Even Hotels the right to use the Customer's trademarks on a royalty-free basis for promotional activities. Specifically, Even Hotels receives an exclusive license to use the Customer's trademarks to promote the company's beverages in promotions, including joint promotions with Even Hotels' other customers.
However, the FDD does not explicitly state that this license is perpetual. Section 4.2 indicates that if a hotel ceases to operate as a Covered Brand, it is relieved of its rights, duties, and obligations under the agreement that accrue after such cessation. Additionally, Section 6.D outlines the actions required upon expiration or termination of the license, including ceasing the use of the Marks and any other of IHG's trademarks or service marks.
Given these clauses, it is implied that the royalty-free license is not perpetual and is tied to the term of the franchise agreement. Upon termination or expiration of the agreement, Even Hotels would no longer have the right to use the Customer's trademarks for promotional purposes. A prospective franchisee should confirm the exact terms and duration of this license with Even Hotels during their due diligence.