To whom is the Even Hotels casualty royalty fee payable?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty | |||
| Royalty | 5% of Gross Rooms Revenue (“GRR”). | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
| Casualty Royalty | 2% of GRR based on average GRR for preceding 12 months | Monthly, on the 15th of the following month (payable to Holiday) | Note 1 |
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the casualty royalty fee is payable to Holiday. This fee is 2% of Gross Rooms Revenue (GRR) based on the average GRR for the preceding 12 months. It is due monthly on the 15th of the following month.
This means that if an Even Hotels location experiences an event that causes a significant drop in revenue, a casualty royalty fee is assessed based on the previous year's revenue. This fee structure could help the franchisor maintain revenue streams during unforeseen circumstances affecting a franchisee's business operations.
Franchisees should be aware of this fee and factor it into their financial planning, understanding that even during periods of lower revenue due to a casualty, this royalty payment will still be required. It is important to note that the fee is calculated based on the average GRR of the preceding 12 months, which may not accurately reflect the current financial situation of the hotel after the casualty event.