Under what circumstances can Even Hotels void a transfer, assignment, or sublicense of the Agreement by the client?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.1 Assignment by Client. If you transfer or assign the Agreement or any portion of it, or if you attempt to sublicense or otherwise transfer any licensed rights, in each case whether by operation of law or otherwise, without our prior written consent: (a) we may void such transfer, assignment, and/or sublicense; and (b) we may suspend the Services, declare an Event of Default, and exercise any of our other rights under the Agreement.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Even Hotels has the right to void a transfer, assignment, or sublicense of the agreement by the client under specific conditions. If the client transfers or assigns the agreement, or any part of it, or attempts to sublicense or transfer any licensed rights without obtaining Even Hotels' prior written consent, Even Hotels may void the transfer, assignment, or sublicense.
In addition to voiding the agreement, Even Hotels also has the right to suspend services, declare an Event of Default, and exercise any other rights it possesses under the agreement if the client undertakes such actions without prior written consent. This provision underscores the importance of obtaining explicit approval from Even Hotels before making any changes to the agreement or transferring rights to another party.
This clause protects Even Hotels' interests by ensuring that the brand maintains control over who operates an Even Hotels franchise and that the quality and standards associated with the brand are upheld. For a prospective franchisee, this means understanding that any desire to transfer, assign, or sublicense the agreement requires careful adherence to the franchisor's approval process. Failure to comply can lead to serious repercussions, including the termination of the franchise agreement and the loss of the business.