Under the Participation Agreement, is the customer responsible for the Eligible Participant's performance for Even Hotels?

According to Even Hotels' 2025 Franchise Disclosure Document, specifically referencing the Managed Fortinet Participation Agreement, the Customer (IHG) is not responsible for the Eligible Participant's (the franchisee's) performance under the Participation Agreement. The agreement explicitly states that it is to be considered an independent agreement between the Eligible Participant and AT&T. This clarifies that the franchisee is solely liable for their own obligations and liabilities outlined in the Participation Agreement.

This arrangement means that Even Hotels franchisees are directly responsible for fulfilling their obligations under the agreement with AT&T, without IHG acting as a guarantor or being held accountable for their performance. This independence is a standard practice in many franchise agreements, where franchisees operate as separate business entities.

For a prospective Even Hotels franchisee, this highlights the importance of carefully reviewing and understanding the terms of the Participation Agreement with AT&T. Franchisees should ensure they can meet all obligations independently, as IHG will not be responsible for any shortcomings or liabilities arising from this agreement. This also means that any disputes or issues related to the Participation Agreement will need to be resolved directly between the franchisee and AT&T.