What is the purpose of the IHG Direct Participation Agreement for Even Hotels franchisees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
This Participation Agreement ("Participation Agreement") is made between Six Continents Hotels, Inc., a Delaware corporation ("IHG") and you (the "Participating Property").
WHEREAS, IHG has negotiated contracts with certain suppliers of goods and services through relationship with group purchasing organizations and numerous other suppliers and distributors of goods and services ("Supplier or Suppliers").
WHEREAS, IHG and Suppliers have agreed in certain instances that IHG may provide these goods and services to Participating Properties and the vehicle for doing so shall be entering into this Participation Agreement between IHG and the Participating Property.
NOW, THEREFORE, in consideration of the recitals above and the mutual covenants and obligations in this Participation Agreement, IHG and the Participating Property acknowledge and agree as follows:
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the IHG Direct Participation Agreement allows Even Hotels franchisees to access goods and services that IHG (Six Continents Hotels, Inc.) has negotiated with various suppliers. IHG leverages its relationships with group purchasing organizations and other suppliers to secure favorable terms.
The agreement serves as a vehicle for IHG to provide these pre-negotiated goods and services to participating properties, including Even Hotels franchises. By entering into this agreement, the Even Hotels franchisee, referred to as the "Participating Property," can benefit from the contracts IHG has established with its suppliers.
The Participation Agreement does not modify or amend any other agreements between IHG and the Participating Property, including the license agreement. It also does not supersede or affect any default and termination notices related to other agreements. IHG retains the right to use the Participating Property's name in public materials related to the agreement. The agreement constitutes the entire understanding between the parties regarding its subject matter and can only be modified in writing signed by officers of both parties.