Under what condition may IHG condition its consent for Even Hotels to relocate Equipment?

According to Even Hotels' 2025 Franchise Disclosure Document, IHG's consent to relocate equipment may be conditional. IHG may require the Even Hotels franchisee to execute a waiver agreement. This agreement would stipulate that the entity controlling the new location waives any rights to the equipment. Additionally, the agreement would ensure that the equipment is surrendered to IHG or HPFS (presumably a financing entity) if the franchisee defaults.

This condition protects IHG's and HPFS's interests in the equipment. By requiring a waiver, IHG ensures that the equipment remains under its control or that of its financing partner, even if it's moved to a location controlled by a different entity. This is particularly important in case of franchisee default, as it allows IHG to recover the equipment without legal disputes with the new location's controller.

For a prospective Even Hotels franchisee, this means that relocating equipment is not a simple matter. It requires IHG's approval, and that approval may come with strings attached. The franchisee needs to be aware of the potential need for a waiver agreement and ensure that the entity controlling the new location is willing to sign it. This could impact the franchisee's flexibility in managing and moving equipment as needed.

This type of clause is not uncommon in franchise agreements, especially when significant equipment is involved. It's a way for the franchisor to maintain control over assets and mitigate risks associated with franchisee operations and potential defaults. Franchisees should carefully review such clauses and understand their obligations before entering into an agreement.