What is the definition of 'Customer Not Ready' (CNR) under the Even Hotels Participation Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. For the purposes of this Participation Agreement, "Customer Not Ready" or "CNR" is defined as when the Participating Property's demarcation point (i) is not reasonably available or otherwise ready for fiber delivery from the Supplier; (ii) is still under construction; (iii) does not have permanent power sources; (iv) secured with a door and lock; or (v) does not have fiber panel or rack unit ready in the location previously communicated to IHG or to the Supplier. The location of fiber panel or rack unit described in (v) shall be determined at the time when the Participating Property and Supplier perform a walkthrough on the site of the Participating Property prior to any work that the Supplier performs ("Walkthrough") in connection with this Participation Agreement. Any fee assessed by the Supplier in connection with a CNR situation shall be paid promptly and in full by the Participating Property.
- d. Furthermore, in the event that the Participating Property's demarcation point is moved from the location agreed to by the Participating Property and the Supplier during the Walkthrough, any request to change or move the location of the demarcation point may result in a direct charge to the Participating Property to cover any and all additional capital expenditure expenses arising from any additional construction. Participating Property shall promptly and in full pay such direct charge to IHG when due.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, a 'Customer Not Ready' or 'CNR' situation, as defined in the Participation Agreement, occurs when the property's demarcation point meets certain conditions that prevent fiber delivery from the supplier. These conditions include the demarcation point not being reasonably available or ready for fiber delivery, being under construction, lacking permanent power sources, being secured with a door and lock, or not having a fiber panel or rack unit ready in the location previously communicated to IHG or the supplier. The location of the fiber panel or rack unit is determined during a walkthrough of the property site by the property and supplier before any work is performed.
If a Customer Not Ready situation occurs, any fees assessed by the supplier are the responsibility of the Even Hotels Participating Property and must be paid promptly and in full. This means that franchisees need to ensure their property meets all the necessary requirements for fiber installation to avoid incurring these additional costs. Careful planning and coordination with the supplier during the walkthrough are crucial to prevent any delays or issues that could lead to a CNR designation.
Furthermore, if the demarcation point is moved from the location agreed upon during the walkthrough, any request to change the location may result in a direct charge to the Participating Property to cover additional capital expenditure expenses arising from additional construction. The Participating Property is required to promptly and fully pay such direct charges to IHG when due. This highlights the importance of accurate planning and adherence to the agreed-upon demarcation point location to avoid unexpected costs related to relocation and additional construction. Franchisees should ensure they have a clear understanding of the installation requirements and potential costs associated with any changes to the agreed-upon plan.