For Even Hotels, under what circumstances can construction be interrupted after it has commenced?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Once the construction has commenced, it shall continue without interruption (except for interruption by reason of events constituting force majeure) until construction is completed.
Licensee must provide IHG monthly reports of construction progress in an approved format.
Notwithstanding the occurrence of any events constituting force majeure, or any other cause, construction shall be completed and the Hotel shall be furnished, equipped and shall otherwise be made ready to open for business in accordance with the License not later than the Opening Deadline set forth in Attachment "A" (or such other date as IHG and Licensee may agree in writing).
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, once construction has started, it should continue without interruption until completion. However, there is an exception for interruptions caused by events constituting force majeure. Force majeure typically includes events outside of the control of the franchisee, such as natural disasters, war, or government regulations that prevent construction from continuing.
Even if a force majeure event occurs, the franchisee is still obligated to complete construction and make the hotel ready to open by the Opening Deadline specified in Attachment "A" of the Franchise Agreement, or another date agreed upon in writing by both Even Hotels and the franchisee. This means that franchisees need to factor in potential delays from force majeure events when planning their construction schedule to ensure they can still meet the deadline.
Licensees are required to provide Even Hotels with monthly reports detailing the progress of construction in a format approved by Even Hotels. This ongoing communication helps Even Hotels monitor the project and address any potential issues that may arise, including those related to force majeure or other factors that could cause delays. Franchisees should maintain thorough documentation of any force majeure events and their impact on the construction schedule to facilitate communication with Even Hotels and potentially negotiate extensions if necessary.