What is the extent of the franchisor's obligation to an Even Hotels franchisee regarding chargeback disputes?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Trademark Disputes.
The "Marks" means the name and mark "EVEN® Hotels", IHG One Rewards and IHG Concerto and their distinguishing characteristics and the other service marks, trademarks, trade names, slogans, commercial symbols, logos, trade dress, copyrighted material and intellectual property associated with the Brand System, including, without limitation, those which IHG may designate in the future for use and those which IHG does not designate as withdrawn from use. Licensee shall notify IHG immediately of (i) an infringement, or a challenge to Licensee's use of any of the Marks; (ii) any objections, demands, controversies, allegations or actions asserted or taken by third parties involving any of the Marks or any part of the Brand System of which Licensee becomes aware; and, (iii) any potentially infringing or unauthorized uses of any of the Marks or any part of the Brand System of which Licensee becomes aware. IHG or its Affiliates will have the sole and exclusive right to handle disputes with third parties concerning use of all or any part of the Marks or Brand System, and Licensee will, at its reasonable expense, extend its full cooperation to IHG in all such matters. All recoveries made as a result of disputes with third parties regarding use of the Marks or Brand System or any part thereof shall be for the account of IHG. IHG need not initiate suit against alleged imitators or infringers, and may settle any dispute by grant of a license or otherwise. Licensee will not initiate any suit or proceeding against alleged imitators or infringers, or any other suit or proceeding to enforce or protect the Marks or Brand System.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the franchisor for Even Hotels, IHG or its Affiliates, retains the sole and exclusive right to manage disputes with third parties regarding the use of the brand's trademarks or the Brand System. The franchisee is obligated to provide full cooperation to IHG in these matters, at the franchisee's reasonable expense.
This means that if an Even Hotels franchisee faces a dispute over the use of the "EVEN® Hotels" name, logo, or other intellectual property associated with the brand, the franchisor, IHG, will take the lead in handling the dispute. The franchisee is required to assist IHG in these situations.
However, the franchisee is responsible for covering its own reasonable expenses incurred while assisting IHG. Any monetary recoveries resulting from these disputes will be for the benefit of IHG. The franchisee is prohibited from initiating any legal actions to enforce or protect the Marks or Brand System. IHG is not obligated to pursue legal action against alleged infringers and may resolve disputes through licensing or other means.