Under the Even Hotels license agreement, what constitutes a material breach related to representations, warranties, information submission, or misrepresentation during the licensing process?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee represents and warrants to IHG that the entities and persons signing this License on behalf of Licensee are duly authorized to do so and to bind Licensee to enter into and perform this License. Licensee further represents and warrants to IHG that Licensee and the entities and persons signing this License on behalf of Licensee have obtained all necessary approvals and that their execution, delivery and performance of this License will not violate, create a default under or breach any charter, bylaws, agreement or other contract, license, permit, order or decree to which they are a party or to which they are subject or to which the Hotel is subject. If Licensee has not already done so prior to the execution of this License, Licensee agrees to submit to IHG by the date specified by IHG all of the documents and information that IHG required or requested in the license application and in connection with the licensing process. Licensee acknowledges that its breach of the representations and warranties in this paragraph; its failure to comply with IHG's requirements for the submission of information and documents; or any omission or misrepresentation of any material fact in the information or documents submitted to IHG in connection with the license application and/or the licensing process will constitute a material breach of Licensee's obligations under this License.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a material breach of the license agreement occurs if the franchisee breaches the representations and warranties made regarding their authority to enter the agreement. This includes ensuring that all necessary approvals have been obtained and that the execution of the license does not violate any existing agreements or obligations.
Furthermore, a material breach occurs if the franchisee fails to comply with Even Hotels' requirements for submitting necessary information and documents during the licensing process. This encompasses all documents and information requested by IHG (InterContinental Hotels Group, the parent company of Even Hotels) in the license application and throughout the licensing procedure.
Finally, any omission or misrepresentation of a material fact in the information or documents submitted to IHG in connection with the license application and/or the licensing process also constitutes a material breach. This means that all information provided must be accurate and complete; any false or misleading statements can have significant legal consequences for the franchisee. Therefore, prospective Even Hotels franchisees must ensure full compliance with all information requests and accuracy in all submissions to avoid potential breaches of the license agreement.