What are the specific obligations of an Even Hotels franchisee (Item 9) that are directly related to the absence of exclusive territories (Item 12)?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not typically grant licenses for exclusive areas or territories. The License will be for a specific site only and for the licensing of one hotel. The License applies to the location specified in it and to no other location. You will not receive an exclusive territory. In special circumstances, when, in Holiday's judgment, special considerations warrant, Holiday may grant exclusive or protected areas within which it will not license another EVEN® Hotel; however in such cases the License would still be for a specific site only and for the licensing of one hotel only. You may face competition from other licensees, from hotels that Holiday or its affiliates own, or from other channels of distribution or competitive brands that Holiday or its affiliates control.
You may not promote, implement or be responsible for any web site relating to your Hotel without Holiday's advance written approval. You may not register any of the Marks (defined in Item 13), as part of any domain name or Uniform Resource Locator (URL), and/or display or use any of the marks or other intellectual property rights related to the Brand System or to any of the other brands licensed by Holiday in connection with any web site, without Holiday's advance written approval. You must comply with all of Holiday's web site requirements in connection with any web sites you develop and maintain relating to your Hotel. The License does not otherwise limit the channels through which you may solicit customers for your Hotel.
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees do not typically receive exclusive territories, which means they may face competition from other franchisees, hotels owned by Holiday or its affiliates, or other channels of distribution or competitive brands controlled by Holiday or its affiliates. This lack of territorial protection has several implications for an Even Hotels franchisee.
First, franchisees must be prepared to compete directly with other Even Hotels and brands within the Holiday family. This competition necessitates a strong focus on maintaining high standards of quality, cleanliness, appearance, and service to attract and retain customers. Franchisees must also actively manage their hotel's operations, either directly or through a qualified management company, ensuring that a dedicated General Manager and Director of Sales work exclusively for their Even Hotel.
Second, franchisees must comply with Holiday's requirements for website management and online presence. While franchisees can solicit customers through various channels, they need written approval for any website related to their hotel and must adhere to Holiday's website standards. They cannot register any of the brand's trademarks as part of a domain name without prior approval.
Finally, Even Hotels franchisees must participate in brand-wide marketing and reservation systems, contributing to the Services Contribution fund. However, Holiday has the discretion to use these funds in a manner that benefits the entire Brand System, without any obligation to ensure direct or proportionate benefits to individual franchisees or specific markets. This arrangement underscores the importance of a franchisee's ability to compete effectively in a non-exclusive territory, relying on the strength of the Even Hotels brand and their own operational excellence.