Under the Even Hotels license, can 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 the 2025 Even Hotels Franchise Disclosure Document, future investments may be required of the licensee under the terms of the license agreement. Specifically, the FDD states that high standards are established by IHG (the franchisor) and that these standards are the essence of the Brand System. As part of maintaining these standards, Even Hotels notes that future investments may be required of the franchisee.
This clause in the Even Hotels license agreement means that franchisees may need to make additional financial investments during the term of their franchise agreement. These investments could be related to upgrades, renovations, or other changes deemed necessary by IHG to maintain the brand's standards and competitiveness. The specific types and amounts of these potential future investments are not detailed in this section.
Prospective Even Hotels franchisees should carefully consider this clause and discuss with the franchisor what types of future investments might be required, the estimated costs, and the factors that would trigger such requirements. Understanding these potential financial obligations is crucial for assessing the overall financial feasibility and risk associated with investing in an Even Hotels franchise. Franchisees should also clarify whether these investments are at the sole discretion of IHG or if there is a collaborative decision-making process involved.