Is the audited Statement of Revenues and Expenses for the Even Hotels Loyalty Program prepared each year?
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, an audited Statement of Revenues and Expenses for the Loyalty Program is prepared each year. However, this statement is not generally available for review by Even Hotels licensees. Instead, it is made available to the appropriate IHG Owners Association's brand marketing committee under a confidentiality agreement.
For prospective Even Hotels franchisees, this means they will not have direct access to the detailed financial information of the Loyalty Program. This lack of transparency might make it difficult to assess the program's financial performance and how contributions are being utilized. Franchisees contribute to the Loyalty Program, as detailed in Item 6, so understanding the program's financials could be important.
The FDD states that 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. While franchisees do not get to review the audited statement, they do have some insight into how the funds are allocated.