For Even Hotels, what is the Licensee's obligation regarding the number and qualifications of individuals employed at the Hotel?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee must ensure suitable, qualified individuals are employed at the Hotel in such number as is sufficient to staff all positions at the Hotel in accordance with the Standards. None of Licensee's employees will be considered to be IHG's employees. Licensee acknowledges and agrees that Licensee, or its management company engaged to operate the Hotel, as may be applicable, is the sole employer of the employees working at the Hotel and that IHG does not directly or indirectly control employment policies, discipline, recruitment or termination and that Licensee is solely responsible for all employment decisions, regardless of whether Licensee has received guidance with respect to such matters from IHG. Neither Licensee nor any of Licensee's employees whose compensation Licensee pays may in any way, directly or indirectly, expressly or by implication, be construed to be IHG's employee for any purpose, including but not limited to with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. IHG will not have the power to hire or fire Licensee's employees. Licensee expressly agrees, and will never
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the licensee is responsible for employing suitable and qualified individuals in sufficient numbers to staff all positions at the hotel, adhering to the brand's standards. The franchisee or their management company is considered the sole employer of the hotel's employees, with full responsibility for all employment decisions, including policies, discipline, recruitment, and termination. Even Hotels does not directly or indirectly control these employment matters, even if guidance is provided to the franchisee.
This means that as an Even Hotels franchisee, you have complete autonomy over your staff but must ensure they meet the brand's standards for service and operation. You are responsible for all costs associated with employment, including wages, benefits, and compliance with labor laws. Even Hotels may offer training programs for your employees, but you are responsible for the expenses related to travel, lodging, and materials for these programs.
Furthermore, the FDD emphasizes that neither the franchisee nor their employees can be considered employees of Even Hotels's parent company, IHG, for any purpose, including insurance, taxes, or withholdings. The franchisee agrees to defend IHG against any claims asserting IHG is a joint employer. This reinforces the independent contractor relationship and protects IHG from potential liabilities related to the franchisee's employees.
This arrangement is typical in franchising, where franchisees operate independently while adhering to brand standards. The franchisee benefits from the brand's recognition and support systems, while the franchisor maintains consistency across all locations without directly managing day-to-day operations and personnel.