Is an Even Hotels franchisee allowed to change the nature of their business without disclosing it?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Hotel comprises all structures, facilities, appurtenances, furniture, fixtures, equipment, entry and exit rights, parking, pools, landscaping and other areas from time to time located on the land identified by Licensee to IHG in anticipation of this License, or located on any land from time to time approved by IHG for additions, signs or other facilities. The Hotel must include the facilities listed on Attachment "A" hereto. No change in the number of approved guest rooms or suites and no other significant change in the Hotel or in the manner in which the Hotel rooms and services are offered to the public (including timesharing and condominium hotel projects and other projects not involving short term stays by transient guests) may be made without IHG's written approval. Licensee represents that it is entitled to possession of the Hotel during the entire License Term without restrictions that would interfere with anything contemplated in this License. Throughout this License, the words "room" and "guest room" are intended to include the word "suites" unless otherwise indicated.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are not allowed to make significant changes to the hotel or the way hotel rooms and services are offered without written approval from IHG. Significant changes include altering the number of approved guest rooms or suites, or converting the hotel into timesharing or condominium hotel projects that do not involve short-term stays by transient guests. This requirement ensures that the Even Hotels brand maintains consistency and standards across all locations.
The FDD emphasizes that the hotel must include the facilities listed in Attachment "A" of the agreement. This attachment likely details specific requirements for the hotel's physical structure and amenities. Any deviations from these standards would need IHG's explicit consent. This provision protects the integrity of the Even Hotels brand and ensures that customers receive a consistent experience regardless of the location they visit.
This restriction is typical in franchising, as franchisors need to maintain uniformity to protect their brand's reputation. For a prospective Even Hotels franchisee, this means they must adhere strictly to the approved plans and operational model. Any desire to innovate or change the business model would require prior approval from IHG, which may or may not be granted. Franchisees should carefully review Attachment "A" and understand the scope of permissible operations before signing the agreement.