What is the definition of 'Property' as it relates to the Even Hotels franchise agreement and IHG?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
"Hotel Agents" means the employees, contractors, suppliers, subcontractors, and representatives of Hotel.
"Hotel Bankruptcy Event" means that Hotel: (a) files a petition in bankruptcy for liquidation, (b) has an involuntary petition in bankruptcy filed against it which is not challenged within ten (10) days and dismissed within thirty (30) days, (c) becomes insolvent, (d) makes a general assignment for the benefit of creditors, (e) is unable to pay its debts as they mature, (f) has a receiver appointed for its assets, (g) has any significant portion of its assets attached, (h) receives a "going concern" explanation or qualification from its external auditor, or (i) experiences a material negative change in its net assets (i.e., total assets minus total liabilities).
"Hotel Agreement" means the franchise, management or other agreement authorizing Hotel to operate under an IHG brand.
"Intellectual Property" or "Intellectual Property Rights" means any patents, copyrights, trademarks, trade secrets, and other proprietary or intellectual property rights.
"Law" means any declaration, decree, directive, legislative enactment, order, ordinance, regulation, rule or other binding restriction of or by any legislature, administrative agency, court, or other governmental authority.
"Next-Gen Payments Solution" means the solution enabled under the terms and conditions of this Agreement for Hotel and other IHG-branded hotels to process card payments integrated with IHG systems.
"Payment Device" means a card machine, pin entry device, or other electronic device used in a debit, credit, or smart cardbased Transaction to accept and encrypt the cardholder's personal identification number.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
I am unable to provide a definition of 'Property' as it relates to the Even Hotels franchise agreement and IHG with the information provided in the 2025 Franchise Disclosure Document excerpts. While the excerpts contain various definitions related to the franchise agreement, such as "Hotel Agents," "Hotel Bankruptcy Event," "Hotel Agreement," "Intellectual Property," "Law," "Next-Gen Payments Solution," and "Payment Device," a specific definition of 'Property' is not included.
However, the excerpts do discuss real property in the context of transferring ownership. Specifically, if the real property used for the Even Hotels operation is owned by the licensee or an entity with equity interest in the licensee, any proposed transfer of a substantial part of that property to a third party would require an application for a new license agreement, unless IHG provides prior written consent. The licensee can, however, mortgage or grant a security interest in the real estate for financing purposes without IHG's consent, provided it's with a third-party bank or commercial lending institution that isn't a competitor of IHG.
To fully understand the definition of 'Property' within the Even Hotels franchise agreement, it is recommended that a prospective franchisee ask the franchisor for clarification. Understanding the scope and limitations of property rights and transfers is crucial for making informed decisions about the franchise investment and ensuring compliance with the franchise agreement.