Under what circumstances can IHG assign or transfer the Even Hotels Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG and its assignees shall have the right to assign or transfer this Agreement or any of the rights, duties, or obligations of IHG under this Agreement, in whole or in part, to any person or legal entity without requirement of prior notice to, or consent of, Hotel or HotelKey.
This Agreement shall be binding on the Parties and their respective successors and permitted assigns.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, IHG (InterContinental Hotels Group) has the right to assign or transfer the Even Hotels Agreement, or any of its rights, duties, or obligations under the agreement, in whole or in part, to any person or legal entity. This can be done without prior notice to, or consent from, the Hotel or HotelKey, which are the franchisee and the Hotel's key management system provider, respectively. This clause provides IHG with significant flexibility in managing its franchise agreements.
For a prospective Even Hotels franchisee, this means that the agreement they sign with IHG could be transferred to another party at any time without their consent or even prior notification. The new party would then assume IHG's rights and obligations under the agreement. This could potentially lead to changes in the way the franchise is managed or supported, depending on the assignee's business practices and priorities.
While the franchisee does not have control over this assignment, the agreement remains binding on both the original parties (franchisee and IHG) and their respective successors and permitted assigns. This ensures that the terms and conditions of the franchise agreement continue to be enforced, regardless of any assignment by IHG. Franchisees should carefully consider this clause and its potential implications before entering into an Even Hotels franchise agreement.