Can Holiday license other hotel brands besides Even Hotels in the future?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
The License does not limit Holiday's right or the rights of its parents, or any subsidiary or affiliate, to use or license the Brand System or any part of the Brand System, to engage in or license any business activity (including business activities referenced in Item 1 which sell similar products and services) or to license any other hotels (or any other hotel brands). These rights include, for example, the licensing, franchising, ownership, operation and/or management of lodging facilities and related activities under the names and marks associated with the Brand System and/or any other names and marks. There is no restriction in the License on Holiday's using any channel of distribution to solicit customers for Holiday's and its affiliates' hotels, whether operating under the marks licensed to you or other marks. Holiday and its affiliates are not restricted from establishing other licenses or company-owned outlets or other channels of distribution through which services or licenses under different trademarks might be offered. The License creates no rights of any kind for you in these other hotel brands and/or businesses at any other location. The License grants you no options, rights of first refusal or other rights to acquire additional licenses.
Holiday licenses numerous hotel brands – see Item 1. Holiday may license other hotel brands in the future. There may currently be licensed, company-owned hotels or company-managed hotels operating under Holiday's brands situated in or near your area. Holiday and its affiliates may establish new licensed, company-owned or company-managed hotels operating under Holiday's brands in or near your area. You may compete with any other hotels operating under Holiday's brands in or near your area. Hotels operating under Holiday's brands (including the same brand as your Hotel) may solicit reservations from customers in your area for which you will receive no compensation.
Holiday uses the same principal business address for its operation of all its hotel brands and Holiday does not maintain physically separate offices for its various brands. Holiday does offer some physically separate training facilities for some hotel brands. There is no mechanism for resolving any conflicts that may arise between your Hotel and other licensed, company-owned hotels or company-managed hotels operating under Holiday's brands. Any resolution of conflicts regarding location, customers, support or services will be entirely within the business judgment of Holiday and its affiliates.
Source: Item 12 — TERRITORY (FDD pages 82–83)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Holiday has the right to license other hotel brands in the future. The FDD states that the license agreement with Even Hotels does not limit Holiday's right to license any other hotel brands. This means that Holiday can introduce new hotel brands or expand existing ones, even if they compete with Even Hotels.
This has a few implications for prospective Even Hotels franchisees. First, franchisees may face increased competition from other hotel brands licensed by Holiday. Second, Holiday is not restricted from using any channel of distribution to solicit customers for its and its affiliates' hotels, whether operating under the marks licensed to the franchisee or other marks. This could impact the franchisee's market share and profitability.
Even Hotels franchisees should be aware that Holiday's decision to license other hotel brands is entirely within its business judgment. There is no mechanism for resolving conflicts that may arise between an Even Hotels location and other hotels operating under Holiday's brands. Therefore, it is important for potential franchisees to carefully consider the competitive landscape and the potential impact of Holiday licensing other hotel brands in the future.