Who benefits from the use of trademarks under the Even Hotels agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee specifically agrees and acknowledges that IHG owns or is licensed to use the name and mark "EVEN® Hotels" and all other Marks, as defined in paragraph 6.B. below, and other elements associated with the Brand System or derived therefrom (including but not limited to domain names or other identifications or elements used in electronic commerce), together with the goodwill symbolized thereby, and that Licensee will not contest, directly or indirectly, the validity or ownership of the Marks or take any other action in derogation of such validity or ownership either during the term of this License or after its termination. All improvements, modifications and additions whenever made to or associated with the Brand System by the parties hereto or anyone else, and all service marks, trademarks, copyrights, and service mark, trademark, domain name or similar registrations at any time used, applied for or granted in connection with the Brand System, and all goodwill arising from Licensee's use of IHG's Marks and other intellectual property, including (without limitation) local goodwill, shall inure to the benefit of and become the property of IHG. Upon expiration or termination of this License, no monetary amount shall be assigned as attributable to any goodwill associated with Licensee's use of the Brand System or any element(s) or component(s) of the Brand System including any trademarks or service marks licensed hereunder.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, IHG (InterContinental Hotels Group) benefits from the use of trademarks associated with the Brand System. The licensee, or franchisee, acknowledges that IHG owns or is licensed to use the name and mark "EVEN® Hotels" and all other Marks, along with other elements associated with the Brand System. This includes domain names and other identifications used in electronic commerce, as well as the goodwill symbolized by these trademarks. The franchisee agrees not to contest the validity or ownership of the Marks.
All improvements, modifications, and additions made to the Brand System by any party, including service marks, trademarks, copyrights, and domain name registrations, become the property of IHG. Additionally, all goodwill arising from the franchisee's use of IHG's Marks and other intellectual property, including local goodwill, inures to the benefit of IHG. This means that any positive reputation or customer loyalty generated through the use of the Even Hotels brand ultimately benefits IHG.
Upon the expiration or termination of the franchise license, no monetary amount is assigned to any goodwill associated with the franchisee's use of the Brand System, including any trademarks or service marks licensed under the agreement. This reinforces that the value of the brand and its associated trademarks remains the exclusive property of IHG, not the franchisee. The franchisee essentially builds equity in a brand that they do not own, and this equity reverts entirely to IHG upon termination of the agreement.