Does the Even Hotels franchise agreement prohibit the licensee from being directly or indirectly owned or controlled by the government of any nation subject to trade sanctions or embargoes imposed by any of the Sanctioning Bodies?

According to Even Hotels' 2025 Franchise Disclosure Document, the Licensee is prohibited from being directly or indirectly owned or controlled by the government of any nation subject to trade sanctions or embargoes imposed by any of the Sanctioning Bodies. The agreement states that the Licensee represents, warrants, and covenants that neither it nor any entity or individual having a direct or indirect ownership interest in it, nor any Guarantor, nor any of Licensee's Affiliates nor any officer, director, employee, member, partner or shareholder of any of the foregoing, has been or is now directly or indirectly owned or controlled by the government of any nation subject to trade sanctions or embargoes imposed by any of the Sanctioning Bodies. The Sanctioning Bodies include Her Majesty's Treasury of the United Kingdom, the Office of Foreign Assets Control of the Department of the Treasury of the United States, the European Union, and/or the United Nations.

This provision ensures that Even Hotels complies with international laws and regulations regarding trade sanctions and embargoes. It also protects Even Hotels from potential legal and reputational risks associated with doing business with entities or individuals connected to sanctioned governments.

For a prospective Even Hotels franchisee, this means they must ensure that they, their business partners, and anyone with an ownership interest in the franchise are not affiliated with governments subject to trade sanctions or embargoes. Failure to comply with this provision could result in termination of the franchise agreement and other legal consequences.