What opportunity does the Even Hotels Guarantor covenant, represent, and warrant to IHG that they have had?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor hereby covenants, represents and warrants to IHG as follows: (a) Guarantor has had the opportunity to review, with the benefit of its legal counsel, each of the terms and conditions of this Guaranty and the License and waives any objection it may have to its failure to review such documents; (b) Guarantor shall at all times be informed on all such matters covered under this Guaranty; (c) Guarantor has legal capacity to execute and deliver this Guaranty and such execution has been duly authorized by all necessary action; (d) each obligation under this Guaranty is legal, valid, binding and enforceable against Guarantor in accordance with all of its terms and conditions, subject to general principles of equity and the effect of bankruptcy and other laws affecting the rights of creditors generally; (e) Guarantor is not a Prohibited Person; (f) this Guaranty does not contain any untrue statement of fact or omit to state any fact material to this Guaranty and (g) the financial statements provided by Guarantor are true and correct in all material respects, have been prepared in accordance with generally accepted accounting principles consistently applied and fairly present the financial condition of Guarantor as of such date.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the Guarantor covenants, represents, and warrants to IHG (Holiday Hospitality Franchising, LLC) that they have had the opportunity to review the Guaranty and License terms with their legal counsel. This includes waiving any objections to not reviewing the documents.
This provision ensures that the Guarantor is fully informed about the obligations they are undertaking by providing the guaranty. It confirms that the Guarantor has the legal capacity and authorization to enter into the Guaranty, and that the obligations are legally binding and enforceable.
Furthermore, the Guarantor confirms that the Guaranty does not contain any false statements or omissions of material facts, and that the financial statements provided are accurate and prepared according to generally accepted accounting principles. This protects IHG by ensuring the Guarantor has the ability to meet the financial obligations of the guaranty.