For Even Hotels, what is the consequence of a Plan default?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
y has no obligation to respond within a certain time frame, it expects to do so within 45 to 60 days from receipt of your request. Holiday may require certain information, tests and inspections, at no expense to Holiday, as a condition of approval.
Holiday requires you to hire qualified, licensed, professional advisors with hotel experience in the form of a project team, which must consist of an interior designer with upscale or boutique hotel brand experience and may consist of, depending on complexity and scope of the work, an architect, engineer, art consultant, lighting consultant, or other related specialist when building or renovating an IHG hotel. If you cannot find such licensed professional help, contact your Openings Regional Director. All architects and interior designers must be approved by Holiday prior to the project commencing. Any design work submitted by unqualified individuals hired by you will be rejected and your Hotel can be subject to Plan default, resulting in an assessment of fees under the terms of your Lic
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a Plan default can occur if the franchisee hires unqualified individuals for design work during the building or renovation of an IHG hotel. Specifically, Even Hotels requires franchisees to hire qualified, licensed, professional advisors with hotel experience, including an interior designer with upscale or boutique hotel brand experience. Depending on the complexity and scope, an architect, engineer, art consultant, lighting consultant, or other related specialist may also be necessary. All architects and interior designers must be approved by Holiday prior to the project commencing.
If unqualified individuals are hired and their design work is submitted, Even Hotels can declare a Plan default. The consequence of this default is an assessment of fees under the terms of the License, with the fee potentially reaching up to $5,000.
Furthermore, Even Hotels retains the right to demand the removal of any non-approved product installed in the hotel if it has not received explicit written approval from IHG Plan Review before installation. This highlights the importance of adhering to the brand's standards and specifications during the construction and renovation phases to avoid potential penalties and ensure compliance.