Under what conditions does the Even Hotels license become valid?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG may require that such
certification be issued by a party that has not participated in the design of the fire protection and life safety systems of the Hotel;
(h) Licensee has notified IHG in writing that all requirements for construction, furnishing and opening the Hotel have been completed and the Hotel is ready to open as a Brand System Hotel;
(i) Licensee has employed a general manager and department managers and they have successfully completed IHG's training programs; and
(j) IHG has granted written approval to open and operate the Hotel as a Brand System Hotel and established the Opening Date.
If IHG establishes an Opening Date but the letter agreement provides for additional construction, upgrading, renovation, or training (the "Additional Work"), Licensee will be authorized to use the Brand System and identify the Hotel as a Brand System Hotel only for such time as Licensee is diligently completing the Additional Work.
Failure to timely complete the Additional Work is a default under this License.
IHG may review any Additional Work, and Licensee must ensure that the Hotel complies with all requirements of IHG following such review.
Licensee, its contractors and subcontractors must cooperate fully with any inspections conducted by IHG.
If any site visits and inspections are necessary to ensure the Hotel complies with the Additional Work requirements, IHG may charge its then-current fee for the additional time spent inspecting the Hotel plus travel costs.
If IHG determines an additional test and inspection of the fire protection systems or life safety components of the Hotel is necessary, IHG may charge Licensee its then-current fee for such site visits and inspections.
Notwithstanding anything else herein to the contrary, IHG may, in its sole judgment, authorize Licensee to open and operate the Hotel as a Brand System Hotel, even though Licensee has not fully complied with the terms of this License, provided that Licensee agrees to fulfill all remaining terms of this License on or before the dates established by IHG as a condition to allowing opening of the Hotel when less than all of the required work has been completed.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, several conditions must be met before a franchisee is authorized to operate under the Brand System. The franchisee must notify IHG in writing that all construction, furnishing, and opening requirements have been met and that the hotel is ready to open as an Even Hotels location. Additionally, the franchisee must have employed a general manager and department managers who have successfully completed IHG's training programs.
IHG must grant written approval to open and operate the hotel as an Even Hotels location and establish the opening date. Even if IHG establishes an opening date, if there is additional construction, upgrading, renovation, or training required, the franchisee is only authorized to use the Brand System and identify the hotel as an Even Hotels location while diligently completing this additional work. Failure to complete this additional work in a timely manner constitutes a default under the license agreement.
However, IHG retains the discretion to authorize a franchisee to open and operate the hotel as an Even Hotels location even if the franchisee has not fully complied with all the terms of the license. This is contingent upon the franchisee agreeing to fulfill all remaining terms by the dates established by IHG as a condition of allowing the hotel to open with less than all required work completed. This flexibility allows for conditional openings, provided the franchisee commits to completing all outstanding obligations as per IHG's schedule.