How does Even Hotels calculate the royalty fee, and can additional royalties be charged?

According to the 2025 Even Hotels Franchise Disclosure Document, the royalty fee is a monthly fee, the specific amount of which is detailed in Item 4 of Attachment A. Even Hotels franchisees should note that additional royalties may be charged on revenues from any activity added at the hotel if it is mutually agreed upon and not currently offered at Brand System Hotels generally, or if it is designed or developed by or for IHG (InterContinental Hotels Group) or its Affiliates.

This means that while the standard royalty fee covers the core franchise rights, Even Hotels retains the flexibility to charge additional royalties for new or unique revenue streams introduced at the franchisee's location. This could include new services, amenities, or activities that are not standard across all Even Hotels locations. The franchisor must mutually agree to these new revenue streams.

For a prospective Even Hotels franchisee, this highlights the importance of understanding what activities are covered by the base royalty fee and what might trigger additional charges. It also emphasizes the need for clear communication and agreement with Even Hotels regarding any new revenue-generating initiatives undertaken at the hotel. Franchisees should carefully review Item 4 of Attachment A to understand the base royalty fee structure and inquire about the process for introducing and obtaining approval for new activities that could be subject to additional royalties.