Does the Even Hotels license grant the licensee exclusive rights to use the Brand System?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG hereby grants to Licensee a limited, non-exclusive license to use the Brand System only at the Hotel, but only in accordance with this License and only during the "License Term" beginning with the Effective Date and terminating as provided under paragraph 11 hereof, and Licensee accepts the right and obligation to operate the Hotel pursuant to the terms of this License. This License applies to the location of the Hotel specified in Attachment "A" hereof (the "Location") and to no other location. Licensee acknowledges that IHG and its Affiliates are and may in the future be engaged in other business activities, including, without limitation, activities involving transient lodging and related activities, and that Licensee is acquiring no rights hereunder other than the right to use the Brand System as specifically defined herein in accordance with the terms of this License.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the license granted to a franchisee is non-exclusive. IHG grants the franchisee a limited, non-exclusive license to use the Brand System solely at the specified hotel location. This license is valid only during the license term, which begins on the effective date and terminates as outlined in the agreement.
This means that Even Hotels retains the right to license the Brand System to other franchisees, operate hotels under the Brand System themselves, or engage in other business activities, including transient lodging and related activities. The franchisee's rights are limited to operating a single Even Hotels location under the terms of the license agreement. The franchisee gains no rights beyond the specific usage of the Brand System as defined in the agreement.
This non-exclusive arrangement is typical in franchising, allowing Even Hotels to expand its brand presence and market coverage. However, for the franchisee, it means there is potential for competition from other Even Hotels locations or IHG's own operations. A prospective franchisee should consider the potential impact of this non-exclusive license on their business and market area.