What is an example of an Event of Default related to legal compliance for an Even Hotels franchisee?

According to Even Hotels' 2025 Franchise Disclosure Document, an Event of Default related to legal compliance occurs if a hotel fails to comply with all laws applicable to the hotel and the Next-Gen Payments Solution, including all applicable Privacy Laws, as well as the policies, requirements, and procedures of IHG that are made available to the hotel from time to time. This falls under section 11.1 Compliance.

For a prospective Even Hotels franchisee, this means that maintaining strict adherence to all relevant laws and IHG's internal policies is crucial to avoid defaulting on the franchise agreement. This includes not only general business laws but also specific regulations related to data privacy and the operation of the Next-Gen Payments Solution. Failure to comply can lead to termination of the agreement.

This requirement is fairly standard in franchising, as franchisors need to ensure that all franchisees operate within legal and ethical boundaries to protect the brand's reputation and avoid legal liabilities. Franchisees should ensure they have systems in place to stay updated on changing laws and policies and to train their staff accordingly. The Even Hotels franchisee must stay current with any changes to these policies to remain compliant.