What must Even Hotels do with existing contracts with bandwidth providers?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year. If a Hotel leaves the Brand System while its IHG Connect Participation Agreement is still in effect, the licensee shall be liable for payment to IHG of an early termination fee equal to (X) the number of months remaining in the term of the term of the Participation Agreement multiplied by (Y) the monthly fees due under the Participation Agreement. Such payment is due within 30 days following the termination date. It is recommended that all Participation Agreements are renewed at expiration, as contracts that are out of term may be subject to price increases until renewed with the existing provider and or the Hotel signs up for a new provider change. Price increases are determined by the provider. All vendor equipment must be returned to the vendor within 30 days of the circuit disconnection or the Hotel will be subject to fees covering the cost of such hardware (i.e., Managed Router, NIDS, etc.).
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, if a hotel has existing contracts with bandwidth providers for Guest Internet Access, the franchisee must allow those contracts to expire or terminate according to their terms. The franchisee is prohibited from renewing these contracts, and must provide appropriate notice as soon as the contract terms allow.
If the existing contract extends more than one year past the effective date of Even Hotels' standards, and the hotel possesses the right to terminate the contract for convenience (without cause) without incurring fees, the franchisee must exercise that right. This ensures the contract terminates within that one-year timeframe.
If a hotel leaves the Even Hotels brand while its IHG Connect Participation Agreement is still active, the franchisee is liable to IHG for an early termination fee. This fee is calculated by multiplying the number of months remaining in the Participation Agreement term by the monthly fees due under the agreement, and is payable within 30 days of termination. Even Hotels recommends renewing Participation Agreements upon expiration, as out-of-term contracts may face price increases until renewed with the existing provider or a new provider is selected. Price increases are determined by the provider. All vendor equipment must be returned within 30 days of circuit disconnection to avoid additional fees.