What is the basis for potential increases in Even Hotels' monthly NGP fee?

According to Even Hotels's 2025 Franchise Disclosure Document, the monthly Next-Gen Payment (NGP) fee may increase based on the terms of the NGP agreement signed during installation. Specifically, the NGP fee can increase (but no more than 5% from the original quoted rate) if Solutions Center Hotel (SCH) incurs higher costs to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.

For a prospective Even Hotels franchisee, this means that while the initial NGP fee is determined at the outset, it is subject to potential increases during the term of the agreement. These increases are tied to SCH's costs, providing some level of justification for the changes. However, the franchisee should carefully review the NGP agreement to understand the specific factors that could trigger a fee increase and how these increases will be calculated.

It's important to note that the increase is capped at 5% above the original quoted rate, offering some protection against excessive or unexpected cost hikes. Franchisees should budget for this potential increase when forecasting their operating expenses. Before signing the franchise agreement, a prospective franchisee should obtain a clear and detailed quote outlining the initial NGP fee and the conditions under which it may increase.