factual

What is the deadline for an Even Hotels franchisee to terminate the agreement if they do not accept a modification?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

If IHG migrates Hotel to an Alternative Solution, IHG may amend this Agreement to incorporate any differing or additional terms required in connection with the Alternative Solution (the "Alternative Solution Terms"). IHG will provide Hotel with a copy of any such Alternative Solution Terms by written notice (the "Alternative Solution Notice"). If Hotel desires not to be migrated to such Alternative Solution, Hotel must provide IHG with written notice of its rejection of the Alternative Solution within thirty (30) days of the date of the Alternative Solution Notice. If Hotel fails to notify IHG of its rejection of the Alternative Solution within such thirty (30) day period, then Hotel will be deemed to have accepted the Alternative Solution and the Alternative Solution Terms.

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, if IHG migrates a hotel to an Alternative Solution, IHG will provide the hotel with a copy of any Alternative Solution Terms by written notice. If the hotel does not want to be migrated to the Alternative Solution, the hotel must provide IHG with written notice of its rejection of the Alternative Solution within thirty (30) days of the date of the Alternative Solution Notice. If the hotel does not notify IHG of its rejection within the 30-day period, the hotel will be considered to have accepted the Alternative Solution and the Alternative Solution Terms.

This means that an Even Hotels franchisee has 30 days from the date of the Alternative Solution Notice to decide whether to accept the new terms or reject the Alternative Solution, effectively terminating the agreement under those specific circumstances. This is an important consideration for franchisees as it dictates the timeframe for evaluating and responding to changes imposed by IHG.

This clause provides a limited window for franchisees to make a critical decision about the future of their franchise. Franchisees should carefully review any Alternative Solution Terms and seek legal counsel if needed to fully understand the implications before the 30-day deadline.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.