Does the Even Hotels agreement specify which party is responsible for paying taxes?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: RECEIPTS]
- 3.5 Taxes.
All Taxes resulting from the provision of the Next-Gen Payments Solution under this Agreement shall be the responsibility of Hotel.
If IHG is required to pay any such Taxes or penalties or interest relating thereto, IHG will provide an invoice for such amounts and Hotel will pay such amounts within thirty (30) days of the date of the invoice.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the hotel franchisee is generally responsible for taxes related to the Next-Gen Payments Solution and the PMS (Property Management System) Solution. Specifically, all taxes resulting from the provision of the Next-Gen Payments Solution and the PMS Solution under the agreement are the responsibility of the hotel.
If IHG (InterContinental Hotels Group) or an IHG affiliate is required to pay any such taxes, penalties, or interest, they will invoice the hotel, and the hotel must pay these amounts within thirty days of the invoice date. This ensures that Even Hotels franchisees are aware of their tax obligations related to these services and are responsible for covering these costs.
Furthermore, if the hotel is required to pay any applicable withholding tax to local tax authorities, the hotel is responsible for paying the PMS Solution fee less the withholding tax amount. The hotel must also provide IHG with proof of payment to the local tax authority within thirty days to enable IHG to obtain any available tax credits. This clarifies the process for handling withholding taxes and ensures compliance with local tax regulations.