Are all Brand System licensees for Even Hotels required to pay the Services Contribution?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
l in connection with the Brand System or in connection with any business activities of its parents, subsidiaries, divisions or affiliates; and
- (f) make available to you consultation and advice pertaining to problems you encounter in operations, facilities and marketing.
Services Contribution; Advertising, Marketing and Promotion:
Hotels that SCH owns and manages and all Brand System licensees must pay the Services Contributions specified in paragraph 3.B of the License and summarized in Item 6 of this disclosure document. Holiday will use these funds as it determines to develop, support and/or administer marketing, reservation and training programs. The Services Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of your Hotel. Holiday and its affiliates are not responsible for any of these costs. Funds from Services Contributions will typically be invested in activities that strengthen the brand such as awareness advertising, research, and the development of new or improved services, but may include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs. The Services Contributions do not include costs which you incur in the acquisition, installation or maintenance of reservations services, equipment or training, or in your own marketing activities. Holiday can change the Services Contribution from time to time. Holiday may, on 30 days advance written notice, at any time during the term of your License, and from time to time, increase the Services Contribution by up to 1% of Gross Rooms Revenue. If Holiday increases the Services Contribution in this way, then Holiday cannot make another discretionary increase again for 24 months after the start of a prior increase. Holiday may increase the Services Contribution by a maximum of 2% of Gross Rooms Revenue over the term of your License.
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, all Brand System licensees are required to pay the Services Contribution. This contribution is also mandatory for hotels that SCH (presumably the parent company or an affiliate) owns and manages. The amount of the Services Contribution is detailed in Item 6 of the FDD and paragraph 3.B of the License Agreement.
The Services Contribution is used by Holiday (likely another affiliate) to develop, support, and administer marketing, reservation, and training programs. These funds are intended to strengthen the Even Hotels brand through activities like awareness advertising, research, and the development of new services. However, the funds cannot be used for the costs of maintaining, repairing, modernizing, renovating, or upgrading a franchisee's hotel. Even Hotels clarifies that Holiday and its affiliates are not responsible for covering these costs.
Holiday has the ability to change the Services Contribution. They can increase it by up to 1% of Gross Rooms Revenue with 30 days' advance written notice. After such an increase, no further discretionary increase can occur for 24 months. Over the entire term of the license, Holiday can increase the Services Contribution by a maximum of 2% of Gross Rooms Revenue. This gives Even Hotels some flexibility to adjust marketing and support efforts as needed, but also places a limit on how much the contribution can increase during the franchise term.