factual

What is the Even Hotels franchisee's obligation if an IHG Indemnitee is entitled to indemnification but there is no third-party claim?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

Where an IHG Indemnitee is entitled to indemnification but there is no third party claim, Hotel shall indemnify the IHG Indemnitee and pay all such Losses promptly after receipt of a written demand from IHG.

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

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, if an IHG Indemnitee (IHG, its affiliates, and their respective officers, directors, employees, and agents) is entitled to indemnification but there is no claim from a third party, the franchisee (referred to as "Hotel" in this section) is obligated to indemnify the IHG Indemnitee. This means the franchisee must cover all losses incurred by the IHG Indemnitee.

The franchisee is required to pay all such losses promptly after receiving a written demand from IHG. This implies that IHG will provide a formal written notice detailing the losses for which indemnification is sought, and the franchisee must then make a timely payment to cover those losses.

This obligation is part of a broader indemnification agreement where the franchisee agrees to protect IHG from various liabilities. It's important for a prospective Even Hotels franchisee to understand the scope of these potential liabilities and ensure they have adequate resources and insurance coverage to meet these obligations, even in situations where there is no direct claim from an outside party.

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.