What constitutes an 'Unauthorized Transfer' of an Even Hotels license, and what are the potential consequences?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
If a change of ownership application for the proposed new owner is either (a) not submitted or (b) not approved by IHG, and the conveyance of the Hotel, Hotel site, or any Equity Interest in the Hotel or Equity Interest in Licensee to the proposed new owner occurs, then such transfer shall be considered an unauthorized transfer (an "Unauthorized Transfer"). If an Unauthorized Transfer occurs, it shall constitute a material breach of this License and an abandonment by Licensee of the franchise, and IHG shall be entitled to exercise all of its remedies under this License and applicable law, including, without limitation, its right to terminate this License pursuant to paragraph 11.C hereof.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an 'Unauthorized Transfer' occurs when a change of ownership application is either not submitted to IHG (InterContinental Hotels Group) or is not approved by IHG, yet the conveyance of the Hotel, Hotel site, or any Equity Interest in the Hotel or Equity Interest in Licensee proceeds to the proposed new owner. This means that any transfer of ownership, whether of the physical property or the business entity controlling the Even Hotels franchise, requires IHG's explicit approval.
The consequences of an Unauthorized Transfer are significant. The FDD states that it constitutes a material breach of the License agreement and an abandonment of the franchise by the Licensee. This gives IHG the right to exercise all available remedies under the License and applicable law.
Specifically, IHG can terminate the License agreement. This means the franchisee would lose the right to operate the Even Hotels franchise. Given the severity of these consequences, it is crucial for any Even Hotels franchisee to adhere strictly to the transfer protocols outlined in the License agreement and to obtain IHG's approval before proceeding with any transfer of ownership or equity interest.