factual

Must Even Hotels franchisees obtain Holiday's approval for construction plans?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

. Although Holiday does not grant site approval, it may deny site approval for a hotel. Conforming the site to federal, state and local laws, ordinances, and building codes and obtaining required permits (e.g. health, sanitation, building, driveway, utility and sign permits, etc.) is your responsibility.

At least 210 days prior to ground break, you must submit preliminary plans. Holiday will approve your construction plans for conversion or new development if they meet the requirements of the License and the Standards. You may not start construction until you obtain Holiday's approval. Construction or remodeling costs and arrangements are your responsibility alone. Holiday may in the future require use of prototype plans, but Holiday does not currently provide or mandate them. You must commission and pay your architect directly.

At least 120 days prior to ground break, you must submit final plans, specifications and drawings for the Hotel, including its proposed equipment, furnishings, facilities and signs, with the detail and containing the information that Holiday requests, and to commence construction. Unless Holiday grants your request for an extension to your construction completion deadline, you must complete construction and furnishing and obtain Holiday's authorization to open a new development hotel for business within 18 months from the date of commencement of construction and within 24 months from the date of the License.

You may apply for an extension of the construction commencement or completion deadlines. Holiday will consider various factors which may influence your extension request, including the ability to obtain financing or building permits, zoning and local ordinances, weather conditions, shortages or delayed installation of equipment, fixtures and signs. Holiday's approval of extension requests is not automatic. You will be responsible for any expenses incurred by Holiday in processing the extension request. As Note 7 to Item 6 describes, there is a fee for extending these deadlines.

EVEN® Hotels Brand Standards:

Before you purchase a license, you will have the opportunity to review a copy of the Standards. Thereafter, Holiday may make the Standards available to you in hard paper copy, or, at Holiday's option, in digital, electronic or other computerized form. The Standards contain mandatory and suggested specifications, standards, and procedures. All EVEN® Hotels are subject to the Standards. Holiday will notify you of each change in the Standards at least 30 days before it goes into effect. These notifications can be by digital, electronic, computerized or other means. The Standards are confidential and remain

Holiday's property and are protected by applicable copyright laws (see paragraphs 3, 4 and 12 of the License).

Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, franchisees must obtain Holiday's approval for construction plans. At least 210 days before breaking ground, franchisees must submit preliminary plans to Holiday. Holiday will then approve the construction plans for either a conversion or new development, provided the plans meet the requirements outlined in the license and the brand standards. Construction cannot begin until Holiday provides its approval.

Furthermore, at least 120 days before breaking ground, franchisees must submit final plans, specifications, and drawings for the hotel. This submission must include details of the proposed equipment, furnishings, facilities, and signs, containing all information requested by Holiday. Franchisees are responsible for all construction and remodeling costs and arrangements. While Holiday may require the use of prototype plans in the future, they do not currently mandate or provide them, and franchisees must commission and pay their architect directly.

Holiday will review the construction working drawings to ensure they comply with the brand standards. However, Holiday does not review the drawings for compliance with local, state, and federal laws, including the Americans with Disabilities Act, as this responsibility falls solely on the franchisee. Franchisees should be aware that any design work submitted by unqualified individuals may be rejected, potentially leading to a Plan default and associated fees of up to $5,000. Additionally, franchisees may be required to remove any non-approved product installed in the hotel that has not been approved by IHG Plan Review before installation.

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.