Under what conditions can IHG terminate the Even Hotels license with advance notice?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (1) In accordance with notice from IHG to Licensee, this License will terminate (without any further notice unless required by law), provided that:
- (a) the notice is mailed at least 30 days (or longer, if required by law) in advance of the termination date;
- (b) the notice reasonably identifies one or more breaches of Licensee's obligations; and
- (c) the breach(es) are not fully remedied within the time period specified in the notice.
- (2) If Licensee shall have engaged in a violation of this License, for which a notice of termination was given and termination failed to take effect because the default was remedied during the then preceding 12 months, the period given to remedy defaults will, if and to the extent permitted by applicable law, thereafter be 10 days instead of 30 (provided, however, if there have been two or more violations of this License in the preceding twelve months for which notices of termination were given, upon the next violation, if and to the extent permitted by applicable law, this License may be terminated by IHG immediately upon notice).
- (3) In any judicial proceeding in which the validity of termination is at issue, IHG will not be limited to the reasons set forth in any notice sent under this paragraph.
- (4) If Licensee fails to cure its breach of its obligations timely and in the manner required by IHG, IHG may in its sole discretion suspend the Hotel from access to the Brand System. IHG may also in its sole discretion remove the Hotel's listing from any website services and divert reservations previously made for the Hotel to other Brand System Hotels or IHG Portfolio Brand Hotels. Licensee must pay all costs arising from suspension from the Brand System. IHG's election to suspend the Hotel from said access rather than terminate this License will not: (i) constitute a waiver of any breach by Licensee or of any rights
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, IHG (InterContinental Hotels Group) can terminate the license agreement with advance notice under specific conditions related to breaches of the agreement by the franchisee. IHG must provide at least 30 days' notice (or longer if required by law), clearly identifying the franchisee's breaches of obligations. The franchisee then has the specified time to fully remedy these breaches. If the breaches are not corrected within the given timeframe, IHG can terminate the license.
Notably, if a franchisee has previously violated the license agreement and remedied the default within the past 12 months, the period to remedy future defaults may be reduced to 10 days, if permitted by law. Furthermore, if there have been two or more violations in the preceding 12 months for which termination notices were given, IHG may terminate the license immediately upon notice for any subsequent violation, again if permitted by applicable law. This escalating consequence highlights the importance of consistent compliance with the franchise agreement.
In the event of a legal dispute regarding the validity of the termination, IHG is not restricted to the reasons initially provided in the termination notice. Additionally, if the franchisee fails to adequately address the breach, IHG has the discretion to suspend the hotel's access to the Brand System, remove its listing from websites, and redirect reservations to other hotels within the Brand System or IHG's portfolio. The franchisee is responsible for all costs associated with this suspension, and IHG's decision to suspend access does not waive its right to terminate the license or entitle the franchisee to any compensation for losses incurred due to the suspension.