What is the 'Cancellation Fee' under the IHG Direct Participation Agreement for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
In addition, if the Participating Property cancels the required installation for the provision of Services hereunder ("Site Cancellation"), the Participating Property may be assessed a cancellation fee in connection with the Site Cancellation ("Cancellation Fee"), and the Participating Property shall be responsible for the payment of such Cancellation Fee to IHG when due.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, if a Participating Property cancels the required installation for the provision of services, the Participating Property may be assessed a cancellation fee in connection with the Site Cancellation ('Cancellation Fee'). The Even Hotels franchisee is responsible for the payment of such Cancellation Fee to IHG when due.
This means that if an Even Hotels franchisee schedules an installation for services under the IHG Direct Participation Agreement and then cancels it, they will likely incur a cancellation fee. The exact amount of this fee is not specified in this section of the FDD, but the franchisee is obligated to pay it when it is due.
Prospective Even Hotels franchisees should inquire about the typical range or calculation method for this cancellation fee to fully understand the potential costs associated with changes to installation schedules. Understanding these potential fees is crucial for budgeting and managing the financial aspects of the franchise.