If a Participation Agreement is terminated, does this automatically terminate the Master Technology Schedule for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 10.2 Termination of a Participation Agreement. The termination of any Participation Agreement pursuant to its terms will not alone cause, or be interpreted as causing, termination of this Master Technology Schedule.
- 10.1 Termination for Convenience. IHG may terminate and/or replace this Master Technology Schedule, in whole or part, upon ninety (90) days' prior written notice to Licensee, without any liability to Licensee.
- 10.3 Other Remedies. If Licensee is in default pursuant to paragraphs 11.B. or 11.C. under the License or in default of any of its obligations to IHG with respect to any Curated Solution, IHG may, in addition to or in lieu of exercising its termination or other, legal, equitable, or contractual rights, limit, reduce, suspend, or terminate Licensee's use of or access to any or all of the Curated Solutions.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the termination of a Participation Agreement does not automatically terminate the Master Technology Schedule. The FDD specifies that the termination of any Participation Agreement pursuant to its terms will not, on its own, cause or be interpreted as causing the termination of the Master Technology Schedule.
This means that even if an Even Hotels franchisee's agreement with a specific service provider (governed by a Participation Agreement) ends, the overall technology framework and requirements set by IHG (the Master Technology Schedule) remains in effect. The Master Technology Schedule outlines the technology standards and systems that Even Hotels franchisees must adhere to, and these obligations continue regardless of individual service provider agreements.
This separation provides Even Hotels with flexibility in managing its technology infrastructure. IHG can change or replace the Master Technology Schedule with 90 days' notice, without liability to the franchisee. This allows IHG to update technology standards or switch service providers without disrupting the entire franchise system. However, if a franchisee defaults on obligations to IHG or regarding any Curated Solution, IHG can limit, suspend, or terminate the franchisee's access to those solutions.
Furthermore, in case of conflicts between the Master Technology Schedule and a Participation Agreement, the Master Technology Schedule takes precedence. This ensures that Even Hotels franchisees must always adhere to the overarching technology standards set by IHG, even if a Participation Agreement contains conflicting terms. This structure maintains consistency and control over the technology used across all Even Hotels locations.