Besides the amounts in the Fee Schedule, what other financial responsibilities does an Even Hotels franchisee have under the Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Interest on Late Payments.
Hotel will pay interest on all amounts that become past due at the lesser of (a) one percent (1%) 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 direct HotelKey to suspend access to and use of the PMS 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 PMS Solution under this Agreement shall be the responsibility of Hotel.
If IHG or an IHG Affiliate is required to pay any such Taxes or penalties or interest relating thereto, IHG or an IHG Affiliate will provide an invoice for such amounts and Hotel will pay such amounts within thirty (30) days of the date of the invoice.
- 3.6 Withholding Taxes.
If Hotel is required to pay any applicable withholding tax payable to the relevant local tax authorities, Hotel shall (a) pay the applicable PMS Solution fee less the amount of the withholding tax; (b) make such required withholding tax payment to the local tax authorities; (c) within thirty (30) days after the date of payment of any
such withholding tax payment, provide IHG with the original or a certified copy of a receipt evidencing payment thereof to the relevant local tax authority; and (d) take all action reasonably required to enable IHG to obtain any tax credit which may be available to it.
- 3.7 Currency.
All fees charged under this Agreement (including any Taxes) will be calculated based on the currency set forth on the cover page of this Agreement but will be invoiced in the local currency used for the existing payment terms between IHG and Hotel under the Hotel Agreement.
Where the local currency is anything other than the United States Dollar, the amounts owed by Hotel in the applicable local currency will be based on the conversion of such local currency to United States Dollars based on the currency conversion practices employed for payments under the Hotel Agreement.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees have several potential financial responsibilities beyond the standard fees outlined in the fee schedule. These responsibilities primarily relate to late payments, payment defaults, taxes, and withholding taxes associated with the PMS (Property Management System) Solution.
Specifically, if an Even Hotels franchisee fails to make payments on time, they will incur interest on the overdue amount. This interest is calculated at the lesser of 1% per month or the highest rate permitted by law. In the event of a payment default, Even Hotels (IHG) has the right to suspend the franchisee's access to the PMS Solution. Furthermore, the franchisee is liable for all collection costs and attorney fees that IHG incurs while trying to recover any delinquent payments.
The franchisee is also responsible for all taxes resulting from the PMS Solution provided under the agreement. If IHG or an IHG affiliate is required to pay any of these taxes, penalties, or interest, the franchisee must reimburse them within 30 days of receiving an invoice. Additionally, if the franchisee is obligated to pay any withholding taxes to local tax authorities, they must deduct that amount from the PMS Solution fee, remit the tax to the authorities, and provide IHG with proof of payment to enable IHG to claim any available tax credits. These fees will be calculated based on the currency set forth on the cover page of the agreement but will be invoiced in the local currency used for the existing payment terms between IHG and Hotel under the Hotel Agreement.