After the Initial Term, how does the Even Hotels agreement continue?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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- The term of this Agreement shall commence as of January 1, 2024 , and shall continue for an initial term of twelve (12) months, provided that this Agreement is not earlier terminated as more particularly described below ("Initial Term").
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- After the Initial Term, this Agreement shall automatically renew for additional one-year Terms, although either party may terminate this Agreement without cause (a) during a renewal Term, upon 90 days prior written notice to the other party, or (b) upon notice of non-renewal of at least 30 days prior to the end of a Term. If client terminates, client's agreement may continue and may continue to be billed for services for longer than 90 days if client is not meeting the Revenue Management Certification Standard and/or any other applicable IHG Brand Standard in an alternate, approved way.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the agreement automatically renews for additional one-year terms after the initial term. The initial term begins on January 1, 2024, and lasts for twelve months. This automatic renewal continues unless either party decides to terminate the agreement.
Either Even Hotels or the franchisee can terminate the agreement during a renewal term by providing 90 days' prior written notice. Alternatively, either party can provide notice of non-renewal at least 30 days before the end of the current term. However, if the franchisee terminates the agreement, they may still be billed for services beyond the 90-day notice period if they are not meeting the Revenue Management Certification Standard or any other applicable IHG Brand Standard through an approved alternative method.
This renewal process provides both Even Hotels and the franchisee with flexibility. The franchisee has the option to continue the agreement on a year-to-year basis, allowing them to reassess their business performance and market conditions annually. Even Hotels also retains the right to terminate the agreement if they deem it necessary, subject to the notice requirements. The clause regarding continued billing after termination if brand standards are not met ensures that franchisees maintain operational standards even while exiting the system.