Can an Even Hotels franchisee assign or transfer their rights or interests under the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding any other term or provision of this License to the contrary, neither this License nor any right or interest herein is assignable or transferable by Licensee.
If Licensee (i) receives an offer to purchase or lease the Hotel or any portion thereof, (ii) desires to sell or lease the Hotel or any portion thereof, or (iii) wishes to convey the Hotel, Hotel site, or any interest in the Hotel or Licensee, Licensee shall give prompt written notice thereof to IHG, stating the identity of the prospective transferee, purchaser or lessee and the terms and conditions of the conveyance, including a copy of any proposed agreement and all other information with respect thereto, that IHG may reasonably require.
Any (i) transfer of Equity Interests in an Entity (other than a transfer expressly permitted hereunder) or (ii) transfer of all or a material part of the Hotel or Hotel site (if the Hotel or Hotel site is owned directly or indirectly by Licensee or by a natural person or Entity that owns any Equity Interest in Licensee), to a new owner shall constitute a change of ownership requiring submittal of an application for a new license.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Licensee is restricted from assigning or transferring the license or any rights or interests related to it. Specifically, the FDD states that neither the license agreement nor any right or interest within it is assignable or transferable by the Licensee.
However, if the Licensee receives an offer to purchase or lease the hotel, desires to sell or lease the hotel, or wishes to convey the hotel, hotel site, or any interest in the Licensee, they must promptly notify IHG (InterContinental Hotels Group). This notification must be in writing and include the identity of the prospective transferee, purchaser, or lessee, as well as the terms and conditions of the conveyance, including a copy of any proposed agreement and any other information IHG may reasonably require.
Furthermore, any transfer of equity interests in an entity or the transfer of all or a material part of the Hotel or Hotel site to a new owner will constitute a change of ownership that requires the submittal of an application for a new license. This applies if the Hotel or Hotel site is owned directly or indirectly by the Licensee or by a natural person or Entity that owns any Equity Interest in Licensee. This ensures that Even Hotels maintains control over who operates and owns its franchises, safeguarding brand standards and reputation.