What is Even Hotels Equipment Lessee required to do if there is a change in location of the Equipment?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- INSPECTION AND NOTIFICATION. Without disrupting Equipment Lessee's regular business operations, Company will have the right during Equipment Lessee's regular business hours to inspect the Equipment at Equipment Lessee's premises or wherever the Equipment may be located and to review all records that relate to the Equipment. Equipment Lessee will promptly notify Company of all details arising out of any change in location of the Equipment, any alleged encumbrances thereon or any accident allegedly resulting from the use or operation thereof.
- or any accident allegedly resulting from the use or operation thereof.
- 1.2.
Equipment Location.
Hotel shall not locate or relocate any Equipment without IHG's prior written consent.
IHG's consent may be conditioned upon Hotel's execution of a waiver agreement pursuant to which, among other things, the entity controlling the new location shall have waived any rights to the Equipment and agreed to surrender the Equipment to IHG or HPFS upon an event of default.
Hotel shall confirm the Equipment location in writing to IHG upon IHG's request.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, if there is a change in the location of the equipment, the Equipment Lessee must promptly notify the Company (presumably Coca-Cola, based on the context of dispensing Coca-Cola products). This notification should include all details related to the change in location.
Additionally, Even Hotels is prohibited from locating or relocating any equipment without IHG's prior written consent. IHG's consent may be conditional, requiring the hotel to execute a waiver agreement. This agreement would ensure that the entity controlling the new location waives any rights to the equipment and agrees to surrender it to IHG or HPFS (presumably a financing company) upon an event of default. Upon IHG's request, the hotel must also confirm the equipment location in writing.
These stipulations ensure that IHG maintains control over the equipment's location and that the equipment remains unencumbered. This protects IHG's investment and ensures compliance with their standards. For a prospective Even Hotels franchisee, this means adhering to strict protocols regarding equipment placement and relocation, requiring proactive communication and adherence to IHG's directives.