Are there any exceptions to Even Hotels' right to modify the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.4 Changes and Modifications.
The terms and conditions of this Agreement may not be amended, waived, or modified, except in a writing signed by both Parties.
- 11.3 Changes and Modifications.
The terms and conditions of this Agreement may not be amended, waived, or modified, except as set forth in Section 8.3 (Termination or Expiration of IHG-HotelKey Agreement) or as otherwise set forth in a writing signed by the Parties.
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- California Business and Professions Code Sections 20000 through 20043 provide rights to the Licensee concerning termination or non-renewal of a License. If the License contains a provision that is inconsistent with the law, the law will control.
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- With respect to franchises sold in California, a franchisor is prohibited from modifying a franchise agreement, or requiring a general release, in exchange for any assistance related to a declared state or federal emergency.
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If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard to any license sold in Washington.
A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the terms and conditions of the agreement cannot be altered unless both parties agree to it in writing. Specifically, Section 8.3 addresses the termination or expiration of the IHG-HotelKey Agreement. This implies that changes or modifications can occur under those specific circumstances or if both parties sign a written agreement to that effect.
However, there are state-specific exceptions to Even Hotels' right to modify the agreement. For franchisees in California, an amendment to the agreement states that if any provision is inconsistent with California Business and Professions Code Sections 20000 through 20043, the law will take precedence. Additionally, Even Hotels is prohibited from modifying a franchise agreement or requiring a general release in exchange for assistance related to a declared state or federal emergency in California.
Similarly, for franchisees in Washington, if any provisions in the franchise disclosure document or license agreement are inconsistent with the Washington Franchise Investment Protection Act, the Act's provisions will prevail. A release or waiver of rights executed by a franchisee will not include rights under the Washington Franchise Protection Act except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel. These stipulations ensure that franchisees' rights are protected under state laws, regardless of what the standard agreement might stipulate.