Under what circumstances might IHG grant limited exceptions to the Standards for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Hotel and all other hotels operated under the Brand System will be subject to the Standards, as they may from time to time be modified or revised by IHG, including limited exceptions from compliance which may be made based on local conditions, type of hotel or special circumstances. The Standards and any modifications to them can be delivered by IHG to Licensee in hard paper copy or, at IHG's option, be made available to Licensee in digital, electronic or other computerized form. If communicated in digital, electronic or other computerized form, Licensee must pay any costs to retrieve, review, use or access the Standards. The Standards are confidential and remain the property of IHG.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, IHG may grant limited exceptions to the brand standards based on local conditions, the type of hotel, or special circumstances. IHG maintains high standards for quality, cleanliness, appearance, design, and service at all Even Hotels locations to protect the brand's public image and increase demand. IHG's judgment in maintaining these standards is controlling.
This means that while Even Hotels franchisees are generally expected to adhere strictly to the brand standards, IHG has the discretion to make exceptions in certain situations. These exceptions could be due to unique aspects of the local market, such as building codes or customer preferences, or could relate to the specific type of Even Hotels property, such as a smaller-format hotel in an urban area. Special circumstances might include renovations or unforeseen events that temporarily prevent full compliance with the standards.
For a prospective Even Hotels franchisee, this clause offers some potential flexibility but also highlights the importance of understanding IHG's decision-making authority. Franchisees should discuss any potential need for exceptions with IHG during the due diligence process and ensure that any agreed-upon exceptions are documented clearly in writing. Franchisees are responsible for any costs to retrieve, review, use, or access the Standards. The Standards are confidential and remain the property of IHG.