What constitutes a default under the Even Hotels license agreement regarding additional construction, upgrading, renovation, or training?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
If IHG establishes an Opening Date but the letter agreement provides for additional construction, upgrading, renovation, or training (the "Additional Work"), Licensee will be authorized to use the Brand System and identify the Hotel as a Brand System Hotel only for such time as Licensee is diligently completing the Additional Work.
Failure to timely complete the Additional Work is a default under this License.
IHG may review any Additional Work, and Licensee must ensure that the Hotel complies with all requirements of IHG following such review.
Licensee, its contractors and subcontractors must cooperate fully with any inspections conducted by IHG.
If any site visits and inspections are necessary to ensure the Hotel complies with the Additional Work requirements, IHG may charge its then-current fee for the additional time spent inspecting the Hotel plus travel costs.
If IHG determines an additional test and inspection of the fire protection systems or life safety components of the Hotel is necessary, IHG may charge Licensee its then-current fee for such site visits and inspections.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, if IHG establishes an opening date for the hotel, but the license agreement requires additional construction, upgrades, renovations, or training, the franchisee is authorized to use the Brand System only while diligently completing this additional work.
Failure to complete the additional work in a timely manner constitutes a default under the Even Hotels license agreement. IHG has the right to review any additional work and the franchisee must ensure the hotel complies with all IHG requirements following the review. The franchisee, its contractors, and subcontractors must cooperate fully with any inspections conducted by IHG.
If site visits and inspections are necessary to ensure compliance with the additional work requirements, IHG may charge its then-current fee for the additional time spent inspecting the hotel, plus travel costs. Additionally, if IHG determines that an additional test and inspection of the fire protection systems or life safety components of the hotel is necessary, IHG may charge the franchisee its then-current fee for such site visits and inspections.