How does Even Hotels define an 'Affiliate' in the context of the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
ices Contributions Licensee pays, nor do IHG or its Affiliates have any obligation to ensure that Licensee benefits directly or proportionately from Services Contributions paid or expenditures made from collected Services Contributions. Local and regional marketing programs and related activities may be conducted by Licensee but only at Licensee's expense and subject to IHG's requirements. Reasonable charges may be made for optional advertising materials ordered or used by Licensee for such programs and activities.
"IHG System Fund Activities" means various activities and arrangements organized and operated by IHG and its Affiliates (as they deem appropriate, in their sole discretion) for the provision of loyalty marketing services, distribution marketing services, brand marketing services and other such marketing and related programs and services for Brand System Hotels and the IHG Portfolio Brand Hotels (as hereinafter defined). These activities may be conducted on a local, regional, national, continental or international basis for all, or a group of, IHG Portfolio Brand hotels. IHG and its Affiliates may modify, in their absolute discretion, the IHG System Fund Activities from time to time. IHG System Fund Activities may include (within IHG's and its Affiliates sole discretion) any purposes that benefit or include Brand System Hotels, as a whole, groups of Brand System Hotels, or other IHG Portfolio Brand Hotels. IHG and its Affiliates have no obligation to ensure that any particular IHG Portfolio Brand Hotel, or particular group of Brand System Hotels, including the Hotel, benefits from the IHG System Fund Activities on a pro-rata or other basis or that the Hotel will benefit from the IHG System Fund Activities proportionate to the contributions paid by Licensee. "IHG Portfolio Brand Hotel(s)" means any hotel, other lodging facility, chain, brand or hotel system, however named, that is constructed, converted to or operated under any brands owned, controlled or under the direction of IHG and its Affiliates, as they may be added to, deleted from or changed from time to time.
**H.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the term 'Affiliates' is referenced in several contexts, particularly concerning IHG's rights and obligations. While a specific definition of 'Affiliate' is not explicitly provided, the FDD indicates its importance in various operational aspects. IHG and its Affiliates manage activities such as loyalty marketing, distribution, and brand marketing services for Brand System Hotels and IHG Portfolio Brand Hotels. These activities, termed 'IHG System Fund Activities,' are organized and operated by IHG and its Affiliates at their discretion, potentially on a local, regional, national, continental, or international scale.
Furthermore, Even Hotels retains the right to have IHG perform its obligations under the License Agreement directly or through its Affiliates or other designees. This indicates that Affiliates play a role in fulfilling the franchisor's responsibilities. Licensees are required to acknowledge and agree to IHG's and its Affiliates' ownership of the Brand System and the right to grant licenses for its use. This underscores the significance of Affiliates in managing and protecting the brand's intellectual property.
In the context of Personal Data, 'IHG Marketing Data' is defined as Personal Data related to members of IHG's or its Affiliates' frequency marketing or rewards programs. This highlights that Affiliates are involved in managing marketing data and programs. While the FDD does not offer a precise definition, it consistently portrays Affiliates as entities closely tied to IHG, participating in marketing, operations, and brand management.
Prospective franchisees should seek clarification from Even Hotels regarding the precise legal definition of 'Affiliate' to fully understand the scope of entities that may be involved in the franchise relationship and the implications for their business operations.