To whom is the audited Statement of Revenues and Expenses for the Even Hotels Loyalty Program made available?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
The Loyalty Program and your required contributions to the Loyalty Program are described in Item 6. Holiday's Senior Vice President, Global Loyalty and Partnerships administers the Loyalty Program. The financial information of the Loyalty Program is included within an audited Statement of Revenues and
Expenses that is made available for review to the appropriate IHG Owners Association's brand marketing committee under a confidentiality agreement, and is not generally available for distribution. In the most recently concluded twelve-month period ended December 31, 2024, the Loyalty Program contributions were used as follows: 78% on award costs, 17% on member communication/promotions, 3% on administrative expenses, and 2% on services from corporate allocations such as Information Technology Data Warehouse, and the Service Center.
The audited Statement of Revenues and Expenses will be prepared each year; however, it is not generally available for review by licensees, and Holiday does not provide periodic accounting reports.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the audited Statement of Revenues and Expenses for the Loyalty Program is available for review by the appropriate IHG Owners Association's brand marketing committee, under a confidentiality agreement. This statement is not generally available for distribution to franchisees.
This means that individual Even Hotels franchisees do not have direct access to the detailed financial information of the Loyalty Program. Instead, a committee representing brand owners within the IHG system reviews the statement, ensuring some level of oversight and accountability. The confidentiality agreement suggests that the information contained within the statement is sensitive and not intended for public disclosure.
For a prospective franchisee, this indicates a limited transparency regarding the Loyalty Program's financials. While the brand marketing committee has access, individual franchisees must rely on this committee to represent their interests and ensure the program's financial health. It is important for potential franchisees to understand the structure and function of the IHG Owners Association and its brand marketing committee to assess how well their interests will be represented.
In the most recently concluded twelve-month period ended December 31, 2024, the Loyalty Program contributions were used as follows: 78% on award costs, 17% on member communication/promotions, 3% on administrative expenses, and 2% on services from corporate allocations such as Information Technology Data Warehouse, and the Service Center. This breakdown provides some insight into how Loyalty Program contributions are allocated, even though the full audited statement is not directly accessible to franchisees.