Does the Even Hotels agreement specify who is responsible for determining applicable taxes, deposits, and fees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
e cover page of this Agreement. In addition, if a scheduled implementation is not completed and reserved resources are not utilized due to Hotel's action or inaction, Hotel will pay a reschedule fee. The obligation of Hotel to pay all fees is absolute and unconditional and, except as expressly provided, shall not be subject to any abatement, deferment, reduction, defense, counterclaim, set-off, or recoupment.
- 3.2 Invoicing and Payment. IHG shall invoice Hotel each month for the fees associated with the Next-Gen Payments Solution set forth on the cover page of this Agreement. For most Transactions, the NGP Transaction Fee will be collected by merchant service provider Fiserv as part of the settlement reconciliation. Hotel shall pay the fees invoiced for payment within thirty (30) days after the date of the applicable invoice.
- 3.3 Interest on Late Payments. Hotel will pay interest on all amounts that become past due at the lesser of: (a) one and one half percent (1½%) per month; or (b) the highest rate allowed by Law.
- 3.4 Payment Default. If Hotel should default on any payment obligation owed under this Agreement, IHG shall have the right to suspend access to and use of the Next-Gen Payments Solution by Hotel. Additionally, Hotel will be responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
- 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.
- 4.0 CONFIDENTIAL INFORMATION.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee (referred to as 'Hotel' or 'Licensee') is generally responsible for all taxes resulting from the services provided under the agreements. Specifically, the hotel is responsible for taxes related to the PMS Solution and the Next-Gen Payments Solution. If IHG (InterContinental Hotels Group) is required to pay any of these taxes, penalties, or interest, they will invoice the hotel, which must then pay the invoiced amount within thirty days.
Furthermore, if the hotel is required to pay any applicable withholding tax to local tax authorities, they must pay the PMS Solution fee less the withholding tax amount. The hotel must also make the required withholding tax payment to the local tax authorities and provide IHG with a receipt as proof of payment within thirty days. The hotel is also expected to take actions to enable IHG to obtain any available tax credit.
In addition to tax responsibilities, the Even Hotels agreement states that the hotel will pay interest on late payments. The interest rate will be the lesser of one and one-half percent (1½%) per month or the highest rate allowed by law. If the hotel defaults on any payment obligation, IHG has the right to suspend access to the Next-Gen Payments Solution and the hotel will be responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
These stipulations in the Even Hotels franchise agreement clarify the financial responsibilities of the franchisee regarding taxes, fees, and potential penalties, ensuring that the franchisee is aware of their obligations and the consequences of non-compliance.