Which items in the Even Hotels Disclosure Document relate to the licensee's obligation for pre-opening purchases/leases?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section In Agreement | Disclosure Document item |
|---|---|---|
| b. Pre-opening purchases/leases | License: 3.A & 8.B and Attachment B MTSS: 4.3, 4.4 & Attachment 4-3 to Schedule 4 | Items 5, 6 & 7 |
Attachment 4-3 to Schedule 4 Hotel Opening Consultation Services Supplemental Terms
Completion of Technology Purchases.
At least 120 days before the Hotel opening date, Licensee will acquire the Hardware, Software, and communications capabilities specified in the Minimum Configuration.
In addition, at least 120 days before the Hotel opening date, Licensee will enter into the Participation Agreements for the Additional Required Services.
Site Preparation.
Licensee will make available prior to the scheduled installation date, at its own expense, a site for installation and operation of the Hardware in accordance with specifications, which, without waiving or modifying Licensee's obligations hereunder, must be readily accessible to installation personnel.
Licensee will furnish the required electrical connections, power, outlets, air conditioning, patch panel, and local area network cable installation required by each manufacturer's installation instructions or other documentation, and shall perform all work, including alterations, that IHG, in its sole discretion, deems necessary to prepare the site for installation and operation of the Hardware.
In the event site preparation has not been completed to the reasonable satisfaction of IHG in a timely manner, Licensee will pay upon invoice from IHG the amount of $2,600 (as such charge may be modified by IHG from time to time).
Source: Item 9 — LICENSEE'S OBLIGATIONS (FDD pages 68–69)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Item 9 outlines the licensee's obligations, including those related to pre-opening purchases and leases. Specifically, it references 'License: 3.A & 8.B and Attachment B MTSS: 4.3, 4.4 & Attachment 4-3 to Schedule 4' and indicates that further details are available in Items 5, 6, and 7 of the disclosure document. This means that franchisees can find information about what pre-opening purchases and leases they are required to make, along with the associated terms, in those sections of the FDD.
Additionally, Attachment 4-3 to Schedule 4, titled 'Hotel Opening Consultation Services Supplemental Terms,' provides further details on technology purchases and site preparation. Licensees are required to acquire specified hardware, software, and communication capabilities at least 120 days before the hotel opening date and enter into participation agreements for additional required services. They are also responsible for preparing the site for hardware installation, including electrical connections, power outlets, and network cabling, according to IHG's specifications. Failure to complete site preparation to IHG's satisfaction may result in a charge of $2,600, which IHG may modify from time to time.
These stipulations mean that prospective Even Hotels franchisees need to be aware of the significant upfront investments required before opening. They must budget not only for the costs of leasing or acquiring a site but also for technology infrastructure and site preparation expenses. The 120-day lead time for technology purchases is a critical deadline to keep in mind. Furthermore, the potential $2,600 fee for inadequate site preparation highlights the importance of adhering to IHG's specifications and timelines to avoid additional costs. Franchisees should carefully review Items 5, 6, and 7, as well as Attachment 4-3 to Schedule 4, to fully understand their pre-opening financial obligations.