Does Even Hotels require IHG's consent to locate or relocate any Equipment?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall not locate or relocate any Equipment without IHG's prior written consent.
IHG's consent may be conditioned upon Hotel's execution of a waiver agreement pursuant to which, among other things, the entity controlling the new location shall have waived any rights to the Equipment and agreed to surrender the Equipment to IHG or HPFS upon an event of default.
Hotel shall confirm the Equipment location in writing to IHG upon IHG's request.
Hotel covenants that it will not pledge or encumber any of the Equipment or the interest of HPFS in the Equipment in any manner whatsoever nor create or permit to exist any levy, lien or encumbrance thereof or thereon except those created by or through HPFS.
The Equipment shall remain the personal property of HPFS (during the initial 48-month Term) whether or not affixed to realty and shall not become a fixture or be made to become a part of any real property on which it is placed without the prior written consent of HPFS.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the hotel is prohibited from locating or relocating any equipment without first obtaining written consent from IHG. IHG has the right to make their consent conditional, potentially requiring the hotel to execute a waiver agreement. This agreement would ensure that the entity controlling the new location waives any rights to the equipment and agrees to surrender it to IHG or HPFS (presumably IHG's financing partner) in the event of a default.
Furthermore, the Even Hotels franchisee must confirm the equipment's location in writing to IHG upon request. The franchisee is also prohibited from pledging or encumbering the equipment in any way, or allowing any liens or encumbrances on it, except those created by HPFS. The equipment remains the personal property of HPFS for the initial 48-month term, regardless of whether it's attached to the real estate, unless HPFS provides prior written consent for it to become a fixture.
This requirement protects IHG's and HPFS's interests in the equipment and ensures that the franchisee cannot use the equipment as collateral or move it without permission. For a prospective Even Hotels franchisee, this means they must be diligent in documenting the location of all equipment and seeking IHG's approval before making any changes. Failure to comply could result in a default under the franchise agreement and potential loss of the equipment.