Under what conditions can Even Hotels modify the provisions of the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 11.3 Changes and Modifications.
The terms and conditions of this Agreement may not be amended, waived, or modified, except as set forth in Section 8.3 (Termination or Expiration of IHG-HotelKey Agreement) or as otherwise set forth in a writing signed by the Parties.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the terms and conditions of the agreement can only be amended, waived, or modified under specific circumstances. Generally, modifications require a written agreement signed by both parties. This ensures that both Even Hotels and the franchisee are in accord with any changes to the original contract, providing a layer of protection and clarity.
However, there are exceptions to this rule. One exception is detailed in Section 8.3, regarding the termination or expiration of the IHG-HotelKey Agreement, suggesting that changes related to this agreement can impact the franchise agreement. Additionally, a court of competent jurisdiction has the authority to modify or "blue pencil" the agreement if any provision is deemed invalid or unenforceable under the law. In such cases, the court can revise the agreement to maintain its validity and enforceability, ensuring the original intent is preserved as much as possible.
Furthermore, the FDD includes state-specific amendments for California, North Dakota, Hawaii, Washington, and Rhode Island. These amendments stipulate that certain provisions of the license agreement are superseded by state laws, particularly concerning franchise investment protection, termination rights, and governing law. For example, provisions that conflict with North Dakota laws or those that designate jurisdiction outside of Rhode Island are deleted or superseded. These state-specific amendments highlight the importance of understanding how local laws can impact the franchise agreement and the franchisee's rights.
In summary, while the Even Hotels franchise agreement generally requires written consent from both parties for modifications, state laws and court decisions can also play a significant role in altering the agreement's terms. Prospective franchisees should carefully review these state-specific amendments and seek legal counsel to fully understand their rights and obligations.