Under what condition can an Even Hotels Participating Property assign the Participation Agreement?

According to Even Hotels' 2025 Franchise Disclosure Document, a Participating Property, or Hotel, is restricted from assigning its rights or delegating its responsibilities under the Participation Agreement to another party unless they obtain prior written consent from IHG. However, the Participation Agreement is binding upon the parties' respective successors in interest and permitted assigns.

This means that if a franchisee wants to transfer their rights or obligations related to the agreement to someone else, they must first get approval from IHG in writing. This provision gives IHG control over who becomes involved in the agreement and ensures that any new party meets their standards.

However, the agreement does specify that it remains binding on the successors and permitted assignees of the parties involved. This suggests that in certain circumstances, such as a merger or acquisition, the agreement could automatically transfer to a new entity. It is important for prospective franchisees to understand the conditions under which IHG might grant assignment approval and what constitutes a 'permitted assign' to fully grasp their obligations and potential limitations.