What insurance coverage is Even Hotels required to maintain for the Equipment, and who must be named as a loss payee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel assumes any and all risk of loss or damage to the Equipment until such Equipment is returned to and received by HPFS or IHG in accordance with the terms and conditions of this Agreement or the IHG-HPFS agreement.
Hotel agrees to keep the Equipment insured at the expense of Hotel against all risks of loss from any cause whatsoever, including without limitation, loss by fire (including extended coverage), theft and damage, and such insurance shall cover not less than the replacement value of the Equipment.
Hotel shall name HPFS as a loss payee and an additional insured, as applicable, under such insurance policies.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee (referred to as 'Hotel' in this context) is responsible for insuring the equipment. The insurance must cover all risks of loss or damage, including loss by fire (with extended coverage), theft, and damage. The coverage amount must be no less than the replacement value of the equipment.
Specifically, Even Hotels requires that HPFS (the Hewlett-Packard Financial Services) be named as a loss payee and an additional insured, as applicable, under these insurance policies. This ensures that in the event of a loss, HPFS's financial interest in the equipment is protected.
This requirement is in place until the equipment is returned to and received by HPFS or IHG (InterContinental Hotels Group). The franchisee bears the risk of loss or damage to the equipment until it is properly returned. If the franchisee fails to meet these obligations, IHG, acting on behalf of HPFS, can take necessary actions to protect their interests, with all associated costs to be paid by the franchisee upon demand.