For Even Hotels, what are some events that the Licensee must promptly notify IHG about regarding the management company?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
If any approved management company stops operating the Hotel for the Licensee for any reason, Licensee must notify IHG immediately.
If there is a change in control of the management company or if the management company becomes a competitor of IHG (or an Affiliate of a competitor) or a Prohibited Person (or an Affiliate of a Prohibited Person), or if the management company becomes the principal operator for a competitor or if there is a material adverse change to the financial condition or operational capacity of the management company, Licensee will promptly notify IHG of any such event together with such additional information that IHG may reasonably request. Based on these changed circumstances, IHG may require Licensee to terminate its agreement with such management company and retain a replacement management company that will be subject to IHG's consent. After IHG receives such notice and any such additional information IHG reasonably requests, IHG will respond to Licensee within thirty (30) days. Furthermore, if Licensee's management company becomes unsuitable or unqualified to operate the Hotel as determined by IHG, in our sole discretion, or if the Hotel is not operated in compliance with IHG's guest satisfaction program, Licensee may be required to retain a new Management Company that is acceptable to us within ninety (90) days.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the licensee is required to promptly notify IHG (InterContinental Hotels Group) under specific circumstances related to the management company operating the hotel. This requirement ensures that IHG is kept informed of any significant changes or issues that could affect the hotel's operations or its alignment with IHG's brand standards.
The licensee must immediately inform IHG if the approved management company ceases to operate the hotel for any reason. Additionally, the licensee is obligated to promptly notify IHG if there is a change in control of the management company, or if the management company becomes a competitor of IHG or an affiliate of a competitor. Notification is also required if the management company becomes the principal operator for a competitor, or if there is a material adverse change to the financial condition or operational capacity of the management company.
Following notification, IHG may request additional information and has the right to require the licensee to terminate the agreement with the current management company and find a replacement that meets IHG's approval. IHG will respond to the licensee within thirty (30) days after receiving the notice and any additional information requested. Furthermore, if IHG determines that the management company is unsuitable or unqualified to operate the hotel, or if the hotel fails to comply with IHG's guest satisfaction program, the licensee may be required to retain a new management company acceptable to IHG within ninety (90) days. These stipulations are in place to maintain the quality and standards of the Even Hotels brand and to protect IHG's interests.