What are 'Proof of Concept Projects' for Even Hotels, and what inherent risks do they involve?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time by mutual agreement, IHG will enable Licensee's access to new or enhanced technologies for use at the Hotel under a test, evaluation, pilot, proof of concept, or other temporary use arrangement ("Proof of Concept Projects").
Licensee acknowledges that such Proof of Concept Projects will entail the deployment of new technologies still under development, that such technologies are expected to contain bugs, imperfectly functioning features, and other defects inherent in the early stage of Software development, and that tolerating such defects is the cost of adopting and testing new and unproven technologies.
Licensee will provide feedback to IHG on such Proof of Concept Projects so that the technologies may be further developed, refined, and enhanced to better serve Licensee and the IHG Portfolio Brands.
IHG may terminate any such Proof of Concept Projects upon reasonable notice to Licensee.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Proof of Concept Projects involve the brand enabling a franchisee's access to new or enhanced technologies for use at the hotel under a test, evaluation, pilot, or other temporary use arrangement. These projects are undertaken by mutual agreement between IHG and the franchisee. The purpose is to test and evaluate new technologies within a real-world hotel environment.
However, the FDD stipulates that these Proof of Concept Projects carry inherent risks. The technologies being deployed are still under development and are expected to contain bugs, imperfectly functioning features, and other defects typical of early-stage software development. Even Hotels acknowledges that tolerating these defects is a necessary part of adopting and testing new and unproven technologies. This means franchisees participating in these projects must be prepared to deal with potential disruptions and imperfections in the technology being tested.
Even Hotels also states that franchisees participating in these projects are expected to provide feedback to IHG. This feedback is intended to help IHG further develop, refine, and enhance the technologies, ultimately benefiting both the franchisee and other IHG Portfolio Brands. IHG also retains the right to terminate any Proof of Concept Projects with reasonable notice to the franchisee. This provides IHG with the flexibility to discontinue projects that are not meeting expectations or are causing significant issues. This also means that the franchisee must be prepared for the possibility that a project they are involved in could be terminated prematurely.
In summary, while Proof of Concept Projects offer Even Hotels franchisees the opportunity to be at the forefront of new technology adoption, they also involve accepting the risks associated with using immature and potentially flawed systems. Franchisees should carefully consider these risks and benefits before agreeing to participate in such projects.