Under the Even Hotels franchise agreement, what constitutes a 'Prohibited Person' as defined by Her Majesty's Treasury of the United Kingdom, the Office of Foreign Assets Control of the Department of the Treasury of the United States, the European Union, and the United Nations?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) For the purposes of this paragraph 13.N., "Person" means any individual, corporation, partnership, joint venture, limited liability company, estate, trust, unincorporated association, any national, provincial, state, county or municipal government or any bureau, office, department or agency thereof and any fiduciary acting in an agency capacity on behalf of any of the foregoing. "Prohibited Person" means any person identified by Her Majesty's Treasury of the United Kingdom ("UK"), by the Office of Foreign Assets Control of the Department of the Treasury of the United States ("US") as a "specially designated national" or otherwise subject to sanction by the European Union ("EU") and/or the United Nations ("UN"), (collectively, "Sanctioning Bodies"), or any other Person with whom IHG, or any of its Affiliates, is otherwise prohibited from transacting business.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a "Prohibited Person" is defined specifically within the context of compliance with international regulations and sanctions. This definition is important because Even Hotels, like other international hotel franchises, must adhere to various laws and regulations concerning anti-money laundering, anti-terrorism, and trade sanctions.
Specifically, a "Prohibited Person" includes anyone identified by Her Majesty's Treasury of the United Kingdom, or by the Office of Foreign Assets Control of the Department of the Treasury of the United States as a "specially designated national." It also encompasses anyone subject to sanction by the European Union and/or the United Nations. More broadly, it refers to any person with whom IHG (the parent company of Even Hotels) or its affiliates are prohibited from conducting business.
For a prospective Even Hotels franchisee, this definition carries significant implications. The franchisee must warrant and represent that they, any guarantor, and anyone with a direct or indirect ownership interest in the franchise will comply with all relevant laws, including those related to anti-money laundering, anti-terrorism, and trade sanctions. Furthermore, all individuals authorized to represent the franchisee must be eligible under applicable United States immigration laws to travel to the United States for training or any other purpose related to fulfilling the franchisee's obligations. Failure to comply with these regulations could result in severe penalties and termination of the franchise agreement.