Which sections of the Even Hotels License Agreement cover the franchisee's opening obligations?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 15: Obligation to Participate in the Actual Operation of the Franchise Business]
ITEM 15
OBLIGATION TO PARTICIPATE IN THE ACTUAL OPERATION OF THE LICENSED BUSINESS
Whether you are an individual, corporation, partnership or other entity, Holiday requires you to retain and exercise direct management control over the Hotel's business at all times unless otherwise approved by Holiday. However, Holiday does not require that you participate personally in the direct operation of the Hotel. Regardless of whether you or a third party management company operate your Hotel, both a duly qualified and experienced General Manager and Director of Sales employed by you or your management company must each work exclusively for your EVEN® Hotel at all times, and if you own more than one EVEN® Hotel or other hotels, you must have a separate, qualified General Manager and Director of Sales for each hotel. Holiday may include conditions in your License requiring you to hire a duly qualified and experienced (i) management company acceptable to Holiday or (ii) a General Manager or Director of Sales with at least two years prior experience in such position at a hotel operated under any of Holiday's upscale brands or at a hotel in a similar brand segment as the Hotel, as defined by Smith Travel Research, Inc. You must obtain Holiday's written consent before entering into any lease, management agreement or other similar arrangement for the operation of the hotel or any part of the hotel with any entity. Holiday may require that any management company you hire have experience in managing hotels similar to EVEN® Hotels.
If Holiday requires that you hire a management company to operate your hotel, it may require that you hire this company or person within a specific period of time either after signing your License or before the date your hotel opens in the Brand System. You must notify Holiday in the designated timeframe before hiring or changing your management company for any reason. These conditions would be determined by Holiday and contained in your License. Holiday may reject a proposed management company if Holiday determines that it is inexperienced in the hospitality business, generally unqualified to operate the hotel or unwilling or unable to: (1) comply with all requirements of Holiday under the License and the Standards, (2) cease operating the Hotel as an EVEN® Hotel once the License terminates, or (3) treat the terms of the License as superior over any conflicting terms in the agreement between you and your management company.
Source: Item 9 — LICENSEE'S OBLIGATIONS (FDD pages 68–69)
What This Means (2025 FDD)
Based on the 2025 Even Hotels Franchise Disclosure Document, Item 15 discusses the franchisee's obligation to participate in the actual operation of the licensed business. This section specifies that Even Hotels requires franchisees to retain and exercise direct management control over the hotel's business, unless Holiday Hospitality Franchising approves otherwise. While franchisees aren't required to personally participate in the direct operation of the hotel, a qualified General Manager and Director of Sales must work exclusively for the Even Hotels location. If a franchisee owns multiple Even Hotels or other hotels, a separate, qualified General Manager and Director of Sales is required for each hotel.
According to Item 15, Even Hotels may include conditions in the License Agreement requiring franchisees to hire a management company acceptable to Holiday Hospitality Franchising, or a General Manager or Director of Sales with at least two years of prior experience in a similar position at a hotel operated under one of Holiday's upscale brands or a hotel in a similar brand segment. Franchisees must obtain Holiday's written consent before entering into any lease, management agreement, or similar arrangement for the hotel's operation. Holiday Hospitality Franchising may require that any management company hired has experience managing hotels similar to Even Hotels.
Item 15 also states that if Holiday Hospitality Franchising requires the franchisee to hire a management company, it may stipulate that this company or person be hired within a specific period after signing the License or before the hotel opens in the Brand System. Franchisees must notify Holiday Hospitality Franchising in the designated timeframe before hiring or changing their management company. Holiday Hospitality Franchising may reject a proposed management company if it determines that the company is inexperienced in the hospitality business, unqualified to operate the hotel, or unwilling or unable to comply with Holiday's requirements under the License and the Standards, cease operating the Hotel as an Even Hotel once the License terminates, or treat the terms of the License as superior over any conflicting terms in the agreement between the franchisee and their management company.