Under what circumstances is an Even Hotels licensee required to reimburse IHG for expenses?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee agrees to pay IHG all expenses, including attorneys' fees and court costs, incurred by IHG or any of the other Indemnitees, and their successors and assigns, to remedy any defaults of or enforce or defend itself or any rights under this License (including without limitation any claim, cross-claim or counter-claim brought by Licensee), to effect termination of this License or collect any amounts due under this License.
Licensee will indemnify IHG, its Affiliates and each of their respective officers, directors, employees, agents, successors and assigns (collectively, the "Indemnitees") against, hold them harmless from, and promptly reimburse them for all payments of money (fines, damages, legal fees, expenses, settlement amounts, judgments, etc.) by reason of any claim, demand, tax, penalty, or judicial or administrative investigation, arbitration action or proceeding whenever asserted or filed (even where negligence of any of the Indemnitees is alleged), regardless of whether any of the foregoing is reduced to judgment, arising from any claimed occurrence at or related to the Hotel or any act, error, neglect, omission or obligation of Licensee or anyone associated or affiliated with Licensee or the Hotel.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a licensee is required to reimburse IHG for all expenses, including attorneys' fees and court costs, incurred by IHG or its Indemnitees. This reimbursement is required to remedy any defaults, enforce rights under the license, defend IHG or its rights under the license (including claims brought by the licensee), terminate the license, or collect any amounts due under the license.
Furthermore, the Even Hotels licensee must indemnify IHG, its affiliates, and their respective officers, directors, employees, agents, successors, and assigns (collectively, the "Indemnitees") against, hold them harmless from, and promptly reimburse them for all payments of money (fines, damages, legal fees, expenses, settlement amounts, judgments, etc.) by reason of any claim, demand, tax, penalty, or judicial or administrative investigation, arbitration action or proceeding whenever asserted or filed (even where negligence of any of the Indemnitees is alleged), regardless of whether any of the foregoing is reduced to judgment, arising from any claimed occurrence at or related to the Hotel or any act, error, neglect, omission or obligation of Licensee or anyone associated or affiliated with Licensee or the Hotel.
This means that as an Even Hotels franchisee, you could face significant financial exposure if IHG incurs expenses due to your actions or the actions of anyone associated with your hotel. This includes legal fees, damages, and settlement amounts. The obligation to indemnify IHG exists even if IHG's own negligence is alleged. This could have significant financial implications for a prospective franchisee, potentially impacting profitability and overall business viability. Franchisees should carefully evaluate their risk management and insurance strategies in light of these indemnity obligations.