What is the Participating Property's responsibility regarding communicating the Site Ready Date to IHG under the IHG Direct Participation Agreement for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
a. As it relates to payments that the Participating Property owes to IHG hereunder, the Participating Property acknowledges and agrees that it is solely responsible to promptly and fully communicate to IHG the expected date by which the Participating Property will be ready for fiber, equipment and other installation required in connection with the provision of Services ("Site Ready Date"). In the event that the Participating Property misses or changes the Site Ready Date after IHG has communicated the Site Ready Date to the Supplier or the Supplier cannot reasonably access the site for the installation (collectively "Customer Not Ready or CNR"), the Participating Property may be assessed a fee in connection thereto, and such fee shall be paid as a part of the payment obligation to IHG as described herein.
- b. In addition, if the Participating Property cancels the required installation for the provision of Services hereunder ("Site Cancellation"), the Participating Property may be assessed a cancellation fee in connection with the Site Cancellation ("Cancellation Fee"), and the Participating Property shall be responsible for the payment of such Cancellation Fee to IHG when due.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, the Participating Property (the franchisee) is solely responsible for promptly and fully communicating the expected date by which the property will be ready for fiber, equipment, and other installation required in connection with the provision of services, referred to as the "Site Ready Date," to IHG. This communication is crucial for coordinating the necessary installations for services provided under the IHG Direct Participation Agreement.
If the Even Hotels franchisee misses or changes the Site Ready Date after IHG has communicated it to the Supplier, or if the Supplier cannot reasonably access the site for the installation, which is collectively termed "Customer Not Ready or CNR", the franchisee may be assessed a fee. This fee becomes part of the payment obligation to IHG. Similarly, if the franchisee cancels the required installation, known as "Site Cancellation", a cancellation fee may be assessed, which the franchisee is responsible for paying to IHG.
This requirement highlights the importance of careful planning and communication on the franchisee's part. Failure to accurately communicate and adhere to the Site Ready Date can result in additional fees, impacting the franchisee's costs. The franchisee should ensure that all site preparations are completed in a timely manner and that any changes to the Site Ready Date are promptly communicated to IHG to avoid potential penalties. This proactive communication is essential for maintaining a smooth installation process and managing costs effectively.
Furthermore, the Even Hotels franchisee should be aware of the potential financial implications of delays or cancellations related to site readiness. These fees are in addition to the initial costs associated with the services and can affect the overall profitability of the franchise. Therefore, franchisees must prioritize site preparation and maintain open communication with IHG to mitigate the risk of incurring these additional charges.