What are the requirements for a 'Contractor' to be considered as such under the Even Hotels FDD?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee is an independent contractor. Neither party is the legal representative nor agent of, or has the power to obligate (or has the right to direct or supervise the daily affairs of) the other for any purpose whatsoever. IHG and Licensee expressly acknowledge that the relationship intended by them is a business relationship based entirely on and circumscribed by the express provisions of this License and that no partnership, joint venture, agency, fiduciary or employment relationship is intended or created by reason of this License. Licensee acknowledges and agrees, and will never contend otherwise, that Licensee alone will exercise day-to-day control over all operations, activities and elements of Licensee and the Hotel and that under no circumstance shall IHG do so or be deemed to do so. Licensee further acknowledges and agrees, and will never contend otherwise, that the various requirements, restrictions, prohibitions, specifications and procedures of the Brand System which Licensee is required to comply with under this License, whether set forth in the Standards or otherwise, do not directly or indirectly constitute, suggest, infer or imply that IHG controls any aspect or element of the day-to-day operations of Licensee or the Hotel, which Licensee alone controls, but only constitute standards Licensee must adhere to when exercising its control of the day-to-day operations of Licensee and the Hotel.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a licensee is considered an independent contractor. This means that neither the licensee nor IHG (InterContinental Hotels Group) is the legal representative or agent of the other, and neither party has the power to obligate or supervise the daily affairs of the other. The relationship between IHG and the licensee is a business relationship defined by the license agreement, and it does not create a partnership, joint venture, agency, fiduciary, or employment relationship.
The FDD states that the licensee has control over the day-to-day operations of the hotel. The licensee must adhere to the standards set forth by IHG, but these standards do not imply that IHG controls the daily operations of the licensee or the hotel.
For a prospective Even Hotels franchisee, this independent contractor status means they have significant autonomy in running their hotel. However, they must still comply with IHG's standards and requirements to maintain the consistency and quality of the Even Hotels brand. This balance between independence and adherence to brand standards is a key aspect of the franchise relationship.