For Even Hotels, what is the requirement regarding obtaining governmental approvals, licenses, and permits before opening the hotel?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Obtain any and all approvals, permits or licenses required for construction to begin.
Submit a copy of the general building permit to IHG when acquired.
- (e) Licensee has obtained all necessary governmental approvals, licenses and permits to possess, occupy and operate all areas of the Hotel, according to IHG's requirements, including specifically without limitation, a permanent certificate of occupancy;
Licensee represents and warrants to IHG that the entities and persons signing this License on behalf of Licensee are duly authorized to do so and to bind Licensee to enter into and perform this License. Licensee further represents and warrants to IHG that Licensee and the entities and persons signing this License on behalf of Licensee have obtained all necessary approvals and that their execution, delivery and performance of this License will not violate, create a default under or breach any charter, bylaws, agreement or other contract, license, permit, order or decree to which they are a party or to which they are subject or to which the Hotel is subject. If Licensee has not already done so prior to the execution of this License, Licensee agrees to submit to IHG by the date specified by IHG all of the documents and information that IHG required or requested in the license application and in connection with the licensing process. Licensee acknowledges that its breach of the representations and warranties in this paragraph; its failure to comply with IHG's requirements for the submission of information and documents; or any omission or misrepresentation of any material fact in the information or documents submitted to IHG in connection with the license application and/or the licensing process will constitute a material breach of Licensee's obligations under this License.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees must obtain all necessary governmental approvals, licenses, and permits to legally possess, occupy, and operate all areas of the hotel, according to IHG's requirements. This includes, without limitation, securing a permanent certificate of occupancy. This requirement is one of the conditions that must be met before IHG grants written approval to open and operate the hotel as a Brand System Hotel and establishes the Opening Date.
Furthermore, before starting construction of a new development Even Hotels location, the franchisee must obtain any and all approvals, permits, or licenses required for construction to begin. A copy of the general building permit must be submitted to IHG when acquired. The franchisee also needs to submit evidence to IHG that they are entitled to possession of the premises on which the hotel will be located, subject to IHG's approval.
Even Hotels requires franchisees to represent and warrant that they have obtained all necessary approvals and that their execution, delivery, and performance of the License will not violate any permit, order, or decree to which they are a party or to which the hotel is subject. Failure to comply with these requirements constitutes a material breach of the franchisee's obligations under the License.
These stipulations ensure that Even Hotels franchisees operate their hotels in compliance with all applicable laws and regulations, protecting both the franchisee and the brand from potential legal issues. Prospective franchisees should carefully review all local, state, and federal requirements for operating a hotel and factor the time and cost of obtaining these approvals into their business plan.