Under the Even Hotels agreement, what is the relationship between the parties; are they considered independent contractors?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
A. No Agency Relationship.
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, the relationship between Holiday Hospitality Franchising, LLC (IHG) and the franchisee (Licensee) is that of independent contractors. The agreement explicitly states that neither party is the legal representative or agent of the other, nor do they have the power to obligate or supervise the daily affairs of the other.
Even Hotels emphasizes that the business relationship is based entirely on the express provisions of the license agreement, and no partnership, joint venture, agency, fiduciary, or employment relationship is intended or created. The franchisee acknowledges and agrees that they alone will exercise day-to-day control over all operations, activities, and elements of the Hotel. IHG will not be deemed to do so.
The agreement clarifies that the requirements, restrictions, specifications, and procedures of the Brand System, which the franchisee must comply with, do not imply that IHG controls any aspect of the day-to-day operations of the franchisee or the Hotel. Instead, these standards are in place to ensure the franchisee adheres to the brand's standards while independently managing their operations.