Upon expiration or termination of the Even Hotels license, will any monetary amount be assigned to goodwill associated with the licensee's use of the Brand System?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon expiration or termination of this License, no monetary amount shall be assigned as attributable to any goodwill associated with Licensee's use of the Brand System or any element(s) or component(s) of the Brand System including any trademarks or service marks licensed hereunder.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, upon the expiration or termination of the license, no monetary amount will be assigned to the franchisee for goodwill associated with their use of the Brand System. IHG owns the Even Hotels Brand System, including the name and marks, and all associated goodwill.
This means that when the franchise agreement ends, Even Hotels franchisees will not receive any compensation for the goodwill they have built up in their specific location through operating under the Even Hotels brand. The goodwill, including any local goodwill, automatically transfers to IHG.
This is a standard practice in franchising. The franchisee is essentially renting the brand's reputation and system for a specific period. Upon termination, the value of the brand and its associated goodwill reverts back to the franchisor, Even Hotels, without any monetary compensation to the franchisee.