Under the Even Hotels Guaranty, what does it mean for each Guarantor to be jointly and severally liable?

According to Even Hotels' 2025 Franchise Disclosure Document, when a guarantor agrees to be jointly and severally liable, it means each guarantor is individually responsible for the entire amount of the obligations and liabilities, as well as jointly responsible with any other guarantors.

In practical terms, this means that if Even Hotels licensee defaults on their obligations under the license agreement, IHG (Holiday Hospitality Franchising, LLC) can pursue any one or all of the guarantors for the full amount owed, regardless of the number of guarantors involved. IHG is not required to first seek payment from the licensee or to divide the debt among the guarantors. They can choose to collect the entire debt from whichever guarantor they deem most capable of paying.

This arrangement provides significant protection to IHG, as it simplifies the process of recovering funds in case of default. However, it places a substantial risk on the guarantors, as each could be held responsible for the entire debt, even if other guarantors exist. A prospective Even Hotels franchisee acting as a guarantor should fully understand this liability and assess their own financial capacity to cover the entire obligation, not just a portion. It is also important to consider the financial stability and reliability of any co-guarantors, as their potential default could increase the individual guarantor's burden.