Is an Even Hotels franchisee required to comply with all applicable laws and obtain necessary governmental licenses to operate the Hotel?

According to Even Hotels' 2025 Franchise Disclosure Document, franchisees must obtain all necessary governmental approvals, licenses, and permits to operate the hotel. Specifically, before Even Hotels grants written approval to open and operate the hotel as a Brand System Hotel and establishes the Opening Date, the franchisee must have obtained all necessary governmental approvals, licenses, and permits to possess, occupy, and operate all areas of the Hotel, according to IHG's requirements, including, without limitation, a permanent certificate of occupancy.

This requirement ensures that the Even Hotels franchisee operates the hotel legally and safely. It also means the franchisee is responsible for understanding and adhering to all local, state, and federal regulations related to hotel operations, including zoning laws, health and safety codes, and alcohol beverage licenses, among others.

This is a standard requirement in the franchise industry, as franchisors want to ensure their brand is associated with legally compliant and reputable businesses. The franchisee's ability to secure these approvals is often a condition precedent to opening the Even Hotels location. The franchisee bears the costs associated with obtaining these licenses and permits.