Does the Even Hotels license agreement restrict Holiday and its affiliates from establishing other licenses or company-owned outlets under different trademarks?
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.
Source: Item 12 — TERRITORY (FDD pages 82–83)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the license agreement does not restrict Holiday, Even Hotels' parent company, or its affiliates from establishing other licenses or company-owned outlets under different trademarks. This means that Holiday and its affiliates have the right to use or license the Brand System, engage in any business activity, or license any other hotels or hotel brands without restriction. This includes the licensing, franchising, ownership, operation, and/or management of lodging facilities under any names and marks.
This lack of restriction extends to channels of distribution, allowing Holiday and its affiliates to solicit customers for their hotels, whether operating under the Even Hotels brand or other brands. The Even Hotels license grants no rights to the franchisee in these other hotel brands or businesses, nor does it provide any options or rights of first refusal to acquire additional licenses.
This aspect of the agreement means that as an Even Hotels franchisee, you may face competition from other hotels owned or licensed by Holiday, even within your area. These other hotels may operate under different brands and solicit reservations from customers in your area, potentially impacting your business. There is also no mechanism for resolving conflicts that may arise between your Even Hotels location and other hotels operating under Holiday's brands, meaning that any resolution will be at the discretion of Holiday and its affiliates.