Is an Even Hotels franchisee allowed to resell any part of the services to a third party?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee must at all times retain and exercise direct management control over the Hotel's business. Licensee shall not enter into any lease, management agreement, or other similar arrangement for the operation of the Hotel or any part thereof (including, without limitation, retail, food and/or beverage service facilities) with any natural person or entity without the prior written consent of IHG in each instance. The approval by IHG of any such lease, management agreement or other similar arrangement for operation of the Hotel or any part thereof shall in no way relieve, reduce, mitigate or waive any of the responsibilities of Licensee under this License, it being understood that all such responsibilities shall at all times remain the obligation of Licensee. Licensee must provide IHG with all information requested by IHG from time to time regarding ownership, control and management of the Hotel and of Licensee.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees must retain direct management control over the hotel's business. The franchisee cannot enter into any lease, management agreement, or other similar arrangement for the operation of the hotel or any part of it with any person or entity without prior written consent from IHG. This includes retail, food, and beverage service facilities. IHG's approval of any such arrangement does not relieve the franchisee of their responsibilities under the license agreement; the franchisee remains obligated. The franchisee must also provide IHG with all requested information regarding the ownership, control, and management of the hotel and the franchisee itself.
This means that while an Even Hotels franchisee can't simply hand over the reins to another operator without IHG's explicit permission, there are potential avenues for collaboration or outsourcing certain aspects of the business. For example, a franchisee might seek approval to lease out restaurant space within the hotel to a third-party restaurant brand. However, the franchisee would still be responsible for ensuring that the restaurant meets IHG's standards and requirements, such as operating hours, participation in IHG programs, and inclusion in guest satisfaction surveys.
The requirement for IHG's prior written consent gives Even Hotels significant control over who operates within the hotel and ensures that brand standards are maintained. This protects the consistency and quality of the guest experience across all Even Hotels locations. Prospective franchisees should carefully consider this requirement and discuss with IHG any plans they may have for involving third parties in the operation of the hotel.
In practical terms, an Even Hotels franchisee needs to be prepared to actively manage the hotel business. While outsourcing certain functions might be possible with IHG's approval, the franchisee cannot simply delegate all responsibilities to a third party. This hands-on approach helps ensure that the hotel meets IHG's standards and provides a consistent experience for guests.