Under what condition will an Even Hotels agreement not be assignable?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.1 Assignment.
Neither this Agreement nor any right or interest under this Agreement is assignable or transferable by Hotel or HotelKey.
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, the franchise agreement is generally not assignable or transferable by the franchisee. Specifically, the agreement states that neither the agreement itself nor any rights or interests within it can be assigned or transferred by the Hotel. This restriction means that an Even Hotels franchisee cannot sell, give, or otherwise transfer their franchise to another party without violating the terms of the agreement.
However, the FDD also indicates that IHG (InterContinental Hotels Group), the franchisor, retains the right to assign or transfer the agreement, or any of its rights, duties, or obligations, to another person or legal entity. This assignment by IHG can occur without prior notice to, or consent from, the franchisee. This clause provides IHG with flexibility in managing its franchise network and business operations.
This condition is fairly standard in franchising, as franchisors typically want to maintain control over who operates their branded locations to protect brand standards and consistency. The franchisee should be aware that they cannot exit the agreement by simply transferring it to someone else; they would need to follow the termination procedures outlined in the FDD and franchise agreement.