Is using electronic signatures optional when executing the Even Hotels License?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| Assets | |||
|---|---|---|---|
| Current assets: | |||
| Cash and cash equivalents | $ 49,317 | $ 63,805 | |
| Restricted cash | 382 | 2,210 | |
| Accounts receivable, less allowance for expected credit losses of | |||
| $53,457 and $44,963 at December 31, 2024 and 2023, respectively | 393,731 | 350,486 | |
| Receivables from affiliates (Note 13) | 231,752 | 176,120 | |
| Pension assets (Note 9) | – | 250 | |
| Contract assets | 20,005 | 18,178 | |
| Contract costs | 2,811 | 2,731 | |
| Net investment in subleases (Note 6) | 2,418 | 1,463 | |
| Current investments in unconsolidated entities (Note 10) | 3,513 | – | |
| Prepaid and other current assets | 97,399 | 79,950 | |
| Total current assets | 801,328 | 695,193 | |
| Investments in unconsolidated entities (Note 10) | 206,939 | 181,087 | |
| Deferred compensation plan investments | 285,953 | 249,969 | |
| Property and equipment, net (Note 3) | 431,771 | 493,445 | |
| Operating lease right-of-use assets, net (Note 6) | 46,384 | 52,209 | |
| Goodwill and intangible assets, net (Note 5) | 1,698,486 | 1,703,043 | |
| Contract assets | 343,879 | 254,176 | |
| Contract costs | 54,190 | 49,357 | |
| Notes receivable (Note 11) | 33,999 | 23,201 | |
| Net investment in sublease (Note 6) | 5,074 | 4,359 | |
| Other assets | 13,185 | 1,431 |
Electronic Signature Acknowledgement:
This License may, at IHG's option, be executed via electronic signature. In such event, Licensee acknowledges that conducting this transaction using electronic means is optional and is not a condition to executing this License. By electronically signing this paragraph, Licensee agrees to conduct this transaction using electronic means, which includes the transmittal of electronic communications and the execution of the agreement using an electronic signature.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the use of electronic signatures is optional when executing the License Agreement. IHG's decision to allow electronic signatures does not make it a requirement for the franchisee.
If IHG opts to use electronic signatures, the franchisee acknowledges that using electronic means is not mandatory for executing the License. By signing the electronic signature acknowledgement, the franchisee agrees to conduct the transaction electronically, including transmitting electronic communications and using an electronic signature. The franchisee also agrees that the parties' electronic signatures are valid and create a binding agreement.
However, if the franchisee does not want to conduct the transaction electronically or use an electronic signature, they must promptly notify IHG. In this case, IHG will provide the franchisee with a non-electronic License for execution.
For franchisees in California, Rhode Island, and Virginia, amendments to the License Agreement specify that signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals. This provides flexibility in the signing process while maintaining the legal validity of the agreement.