Is the Application Fee for an Even Hotels franchise refundable?

According to the 2025 Even Hotels Franchise Disclosure Document, the application fee is generally nonrefundable. Specifically, Item 23 states that the licensee has paid IHG (InterContinental Hotels Group) a nonrefundable application fee, as detailed in Item 3 of Attachment A. However, the FDD also indicates that the application fee becomes non-refundable upon IHG's approval of the application.

This means that a prospective Even Hotels franchisee should be aware that the application fee is at risk of being nonrefundable once the application is approved by IHG. Before approval, there may be circumstances where a refund could be possible, but this is not explicitly stated. It is crucial for potential franchisees to carefully consider their application and financial situation before submitting the application and paying the fee.

It is standard practice in the franchise industry for application fees to be nonrefundable, as these fees often cover the franchisor's costs associated with reviewing the application and conducting due diligence on the prospective franchisee. However, the specific terms and conditions regarding refundability can vary from franchise to franchise. Therefore, a prospective Even Hotels franchisee should clarify with the franchisor the exact conditions under which a refund might be considered prior to IHG approval, and to ensure they fully understand the implications of this policy.