For an Even Hotels franchise, what is the Licensee required to own to request a license to use the Brand System?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
A. IHG owns and licenses the "Brand System" (as defined in paragraph 1.B. below). Licensee is the owner of the Hotel and has requested a license to use the Brand System to operate the Hotel as a Brand System Hotel (as defined in paragraph 1.B. below).
- B. IHG shall grant to Licensee a non-exclusive license to operate the Hotel as a Brand System Hotel, subject to the terms of this License.
- C. Guarantor(s) will provide the Guaranty.
- D. In granting this non-exclusive license, IHG has relied upon the business skill, financial capacity, and character of Licensee and the Guaranty to be provided by the Guarantor(s).
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a Licensee must be the owner of the hotel to request a license to use the Brand System. IHG (InterContinental Hotels Group) owns and licenses the Brand System, and the license granted is non-exclusive, allowing Even Hotels to operate the hotel under the Brand System, subject to the terms of the license agreement. IHG relies on the business skill, financial capacity, and character of the Licensee when granting this license.
This means that to become an Even Hotels franchisee, you must either already own a hotel property or acquire one. The license allows you to operate that specific hotel under the Even Hotels brand, but it doesn't extend to any other locations. IHG retains the right to license the Brand System to others, so your license is not exclusive in a geographic sense.
This requirement ensures that franchisees have a vested interest in the success of the hotel and are committed to maintaining the standards of the Brand System. Prospective franchisees should carefully review the license agreement to understand all the terms and conditions, including any future investment requirements and operational standards.