Under what circumstances does the Limited License granted to Even Hotels franchisees immediately terminate?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
If the damage is not repaired in accordance with this paragraph, this License will forthwith terminate upon notice thereof by IHG to Licensee and Licensee shall be responsible for full liquidated damages under paragraph 11.E. of this License.
(2) If Licensee shall have engaged in a violation of this License, for which a notice of termination was given and termination failed to take effect because the default was remedied during the then preceding 12 months, the period given to remedy defaults will, if and to the extent permitted by applicable law, thereafter be 10 days instead of 30 (provided, however, if there have been two or more violations of this License in the preceding twelve months for which notices of termination were given, upon the next violation, if and to the extent permitted by applicable law, this License may be terminated by IHG immediately upon notice).
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the license agreement can terminate immediately if the franchisee fails to repair damage to the hotel according to Even Hotels' standards. Specifically, this immediate termination occurs if the franchisee receives notice from IHG (InterContinental Hotels Group) about the failure to properly repair the damage. Following such termination, the franchisee is responsible for full liquidated damages as outlined in paragraph 11.E of the license agreement.
Additionally, if a franchisee has previously violated the license agreement and received a termination notice, but the termination was avoided by remedying the default within 12 months, any subsequent violation may lead to immediate termination. In this case, if there have been two or more violations in the preceding twelve months for which notices of termination were given, upon the next violation, the Even Hotels license may be terminated by IHG immediately upon notice, if and to the extent permitted by applicable law.
These provisions highlight the importance of adhering to Even Hotels' standards for hotel maintenance and addressing any breaches of the license agreement promptly to avoid potential immediate termination and associated financial penalties. Prospective franchisees should carefully review the terms regarding termination and liquidated damages to understand their obligations and the potential consequences of non-compliance.