Under the Even Hotels License Agreement, may future investments be required of the Licensee?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Brand System is designed to provide a distinctive, high quality hotel service to the public under the name "EVEN® Hotels". High standards established by IHG are the essence of the Brand System. Future investments may be required of Licensee under this License. Licensee desires to enter into this License in order to obtain a license to use the Brand System in the operation of a hotel located at the "Location" identified on Attachment "A" and defined in paragraph 2.A. below (the "Hotel").
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, future investments may be required of the licensee under the License Agreement. The brand system is designed to provide a distinctive, high-quality hotel service, and maintaining the high standards established by IHG is essential.
This clause in the franchise agreement means that Even Hotels franchisees may need to make additional investments during the term of their agreement. These investments could be related to upgrades, renovations, or changes in brand standards. The specific types and amounts of these future investments are not detailed in this section.
Prospective franchisees should carefully consider this requirement and discuss with Even Hotels the potential scope and financial impact of any future required investments. Understanding the types of investments that may be necessary and the potential costs associated with them is crucial for assessing the overall financial feasibility of the franchise.