Under what condition might IHG condition its consent for Equipment relocation for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall not locate or relocate any Equipment without IHG's prior written consent.
IHG's consent may be conditioned upon Hotel's execution of a waiver agreement pursuant to which, among other things, the entity controlling the new location shall have waived any rights to the Equipment and agreed to surrender the Equipment to IHG or HPFS upon an event of default.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, IHG's consent to relocate equipment may be conditional. Specifically, IHG might require the Even Hotels franchisee to execute a waiver agreement.
This waiver agreement would stipulate that the entity controlling the new location of the equipment waives any rights to the equipment. Furthermore, this entity must agree to surrender the equipment to either IHG or HPFS (presumably a financing entity) if an event of default occurs under the franchise agreement.
This condition protects IHG's and HPFS's interests in the equipment by ensuring they can recover it if the franchisee defaults, regardless of where the equipment has been moved. For a prospective Even Hotels franchisee, this means understanding that relocating equipment is not a simple matter and may involve legal agreements impacting third parties associated with the new location.