Does Even Hotels require consent from IHG for any sale of securities in the Hotel?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
ntal incompetency of Licensee or any natural person with a Controlling Equity Interest in Licensee, such interest may be transferred in accordance with and subject to the terms of paragraph 9.F., provided that: (i) any such Transfer will be made within six (6) months of the date of death or mental incompetency, (ii) the obligations of Licensee under this License are satisfied pending the Transfer, and (iii) the Hotel will be continuously operated by Licensee or a management company approved by IHG.
E. Registration of a Proposed Transfer of Equity Interests.
Any public offering, private placement or other sale of securities in or by Licensee or the Hotel ("Securities") requires IHG's consent. All materials for the offer or sale of those Securities disseminated to any prospective purchaser thereof, filed with any governmental or quasigovernmental entity or intended for distribution to any form of media must be submitted to IHG for its review at least sixty (60) days before the date Licensee disseminates or distributes those materials or files them with any governmental agency, including any materials to be used in any offering exempt from registration under any securities laws. Licensee must submit to IHG a non-refundable Twenty-Five Thousand Dollar ($25,000) processing fee with the offering materials and pay any additional costs IHG may incur in reviewing such materials, including reasonable attorneys' fees. Except as legally required to describe the Hotel in the offering materials, Licensee may not use any of the Marks or otherwise imply IHG's participation or that of its Affiliates, or any of their respective officers, directors, members, managers and employees in such offering or its/their endors
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, any sale of securities in the Hotel requires IHG's consent. This includes any public offering, private placement, or other sale of securities by the Licensee or the Hotel.
For any materials related to the offer or sale of securities, Even Hotels franchisees must submit them to IHG for review at least 60 days before disseminating or distributing the materials. This includes materials filed with any governmental or quasi-governmental entity or intended for distribution to any form of media.
Even Hotels franchisees must also submit a non-refundable $25,000 processing fee with the offering materials and pay any additional costs IHG incurs in reviewing the materials, including reasonable attorneys' fees. The franchisee cannot use any of IHG's marks or imply IHG's participation or endorsement of any securities offering, unless legally required to describe the Hotel in the offering materials. IHG has the right to approve any description of the License or the franchisee's relationship with IHG, or any use of the Marks, in any prospectus or offering materials. However, IHG's review does not constitute agreement with any statements or projections in those documents, nor does it acknowledge compliance with applicable laws.