What specific elements are included in the 'Brand System' for Even Hotels, as it relates to restrictions on competing businesses?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
sharing and condominium hotel projects and other projects not involving short term stays by transient guests) may be made without IHG's written approval. Licensee represents that it is entitled to possession of the Hotel during the entire License Term without restrictions that would interfere with anything contemplated in this License. Throughout this License, the words "room" and "guest room" are intended to include the word "suites" unless otherwise indicated.
B. The Brand System.
The Brand System includes all elements which are designed to identify "EVEN® Hotels" to the public or are designed to be associated with those hotels or to contribute to such identification or association and all elements which identify or reflect the quality standards and business practices of such hotels, all as
specified in this License or as designated from time to time by IHG. The Brand System at present includes, but is not limited to:
- (1) the principal trade and/or service mark "EVEN® Hotels", the service marks "IHG One Rewards" and "IHG Concerto™" and the other Marks (as defined in paragraph 6.B. (below) and intellectual property rights made available to licensees of the Brand System by reason of a license;
- (2) standards, specifications and policies for construction, furnishings, operation, appearance and service of the Hotel, standards and specifications for interior and exterior design and décor, and other requirements as stated or referred to in this License and from time to time in IHG's brand standards for Brand System hotels (the "Standards") or in other communications to Licensee;
- (3) registered and unregistered intellectual property, including without limitation copyrights, trademarks, service marks, logos, designs, know-how, confidential or proprietary information standards, specifications and policies for construction, furnishing, operation, appearance and service of hotels operating as Brand System hotels, and similar property rights;
- (4) all rights to the domain names and other identifications or elements used in electronic commerce as may be designated from time to time by IHG in accordance with IHG's specifications to be part of the Brand System;
- (5) access through IHG to the technology systems, loyalty programs, sales and catering system and other related systems operated in accordance with specifications established by IHG;
- (6) access through IHG to multiple call centres and central reservations offices around the world handling reservations;
- (7) access through IHG to brand marketing services and distribution marketing services including global advertising and publicity and other marketing programs and materials;
- (8) training programs and materials;
- (9) a worldwide hotel distribution of Brand System hotels;
- (10) a guest loyalty program (currently named IHG® One Rewards);
- (11) a recognized presence on the internet;
- (12) an e-commerce team and presence for the given IHG brand and other IHG brands on the internet;
- (13) a global sales team;
- (14) global market coverage; and
- (15) programs for inspecting the Hotel, measuring and assessing service and consumer opinion.
The Standards and all changes to the Standards may be presented in any format, including but not limited to print, electronic or other media. IHG has the right to periodically change the Brand System by adding, modifying, altering and/or deleting elements of the Brand System. "Brand System Hotel(s)" means the hotel(s) operated by IHG, an Affiliate of IHG, or a licensee or franchisee of IHG under the Brand System in any of the fifty (50) states of the United States of America, the District of Columbia, or Canada, and does not include any other hotel operated under a different brand or any other business operation of IHG. An "Affiliate" means, as to any Entity, any division, subsidiary, parent or other Entity that, directly or indirectly, Controls, is Controlled by or is under common Control with such Entity.
2. Grant of License:
IHG hereby grants to Licensee a limited, non-exclusive license to use the Brand System only at the Hotel, but only in accordance with this License and only during the "License Term" beginning with the Effective Date and terminating as provided under paragraph 11 hereof, and Licensee accepts the right and obligation to operate the Hotel pursuant to the terms of this License. This License applies to the location of the Hotel specified in Attachment "A" hereof (the "Location") and to no other location. Licensee acknowledges that IHG and its Affiliates are and may in the future be engaged in other business activities, including, without limitation, activities involving transient lodging and related activities, and that Licensee is acquiring no rights hereunder other than the right to use the Brand System as specifically defined herein in accordance with the terms of this License.
This License does not limit IHG's right, or the rights of any Affiliate of IHG, to use or license the Brand System or any part or element thereof or to engage in or license any business activity at any other location, including, without limitation, the licensing, franchising, ownership, operation and/or management of lodging facilities and related activities under the names and Marks associated with the Brand System and/or any other names and marks. Licensee acknowledges that IHG's rights to use and/or license the Brand System, referenced immediately above, pre-date this License and are not limited or changed by the terms of this License.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 87)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Brand System includes various elements designed to identify Even Hotels to the public and maintain quality standards. These elements range from trademarks and service marks to operational standards and technology systems. The Brand System includes the principal trademark "EVEN® Hotels", service marks like "IHG One Rewards" and "IHG Concerto™", standards for hotel construction, design, and service, intellectual property, domain names, technology systems, loyalty programs, call centers, marketing services, training programs, a worldwide hotel distribution network, a recognized internet presence, an e-commerce team, a global sales team, global market coverage, and inspection programs.
However, the license granted to Even Hotels franchisees does not limit the rights of Holiday (the licensor) or its affiliates to use the Brand System or engage in any business activity, including those that sell similar products and services. This means that Holiday can license other hotels or hotel brands without restriction. There is no restriction on Holiday using any distribution channel to solicit customers for its hotels, whether operating under the Even Hotels brand or other brands. Holiday and its affiliates are not restricted from establishing other licenses, company-owned outlets, or other distribution channels through which services or licenses under different trademarks might be offered.
This lack of exclusivity means that Even Hotels franchisees may face competition from other hotels operating under Holiday's brands, including the same brand, in their area. These other hotels can solicit reservations from customers in the franchisee's area without any compensation to the franchisee. Furthermore, there is no mechanism for resolving conflicts that may arise between the franchisee's hotel and other hotels operating under Holiday's brands; any resolution of conflicts will be at the discretion of Holiday and its affiliates. This arrangement carries a risk for franchisees, as they do not have any territorial protection against competition from other hotels within the same brand family or from Holiday's other hotel brands.