Under what conditions is IHG entitled to injunctive relief against an Even Hotels licensee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee explicitly affirms and recognizes the unique value and secondary meaning attached to the Brand System and the Marks. Accordingly, Licensee agrees that any noncompliance by it with the terms of this License, or any unauthorized or improper use of the Brand System or the Marks by Licensee, will cause irreparable damage to IHG. Licensee therefore agrees that if Licensee engages in this non-compliance, or unauthorized and/or improper use of the Brand System or Marks, during or after the period of this License, IHG will be entitled to both temporary and permanent injunctive relief against Licensee from any court of competent jurisdiction, in addition to all other remedies which IHG may have at law. Licensee consents to the entry of these temporary and permanent injunctions, without IHG being required to prove the inadequacy of money damages as a remedy, without being required to post a bond and without waiving any other rights or remedies at law or in equity.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, IHG (InterContinental Hotels Group) has the right to seek injunctive relief against a licensee under specific circumstances related to non-compliance or unauthorized use of the Brand System and Marks.
Specifically, if a licensee does not comply with the terms of the license agreement or engages in any unauthorized or improper use of the Even Hotels Brand System or its Marks, IHG is entitled to both temporary and permanent injunctive relief. This means IHG can seek a court order to stop the licensee from continuing the non-compliant behavior.
This right extends both during and after the term of the license agreement. The licensee consents to the entry of these injunctions, and IHG is not required to prove that monetary damages would be inadequate or to post a bond. This provision strengthens IHG's ability to protect its brand and system standards, which is typical in franchising to maintain consistency and quality across all franchise locations. IHG also retains all other legal and equitable remedies available to them.