factual

Is an Even Hotels franchisee allowed to assign their rights or delegate their obligations under the Participation Agreement without IHG's consent?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

    1. Assignment. Hotel shall not assign its rights or delegate its obligations under this Participation Agreement to any third party without IHG's prior written consent. This Participation Agreement will be binding upon the parties' respective successors in interest and permitted assigns.

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, a franchisee (referred to as 'Hotel' in the Participation Agreement) is generally prohibited from assigning their rights or delegating their obligations under the Participation Agreement to any third party without obtaining IHG's prior written consent. However, IHG retains the right to assign or transfer the agreement, or any of its rights, duties, or obligations, to another entity without needing to notify or obtain consent from the franchisee. This condition is outlined within the miscellaneous provisions of the agreement.

This stipulation means that while Even Hotels franchisees must seek approval from IHG before transferring their rights or obligations, IHG has the freedom to transfer the agreement without the franchisee's consent. This is a fairly standard clause in franchise agreements, allowing the franchisor flexibility in managing its business relationships.

The Participation Agreement will remain binding upon both parties and their respective successors and permitted assigns. This ensures that the terms of the agreement continue to be enforceable even if there are changes in ownership or management, provided that any assignment by the franchisee has received prior written consent from IHG.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.