Does Even Hotels charge an 'Authorization Fee' for all transactions submitted, regardless of approval?

According to Even Hotels' 2025 Franchise Disclosure Document, an Authorization Fee is charged for each transaction submitted for Authorization, regardless of whether the transaction is authorized or approved. This means that Even Hotels franchisees will incur a fee for every authorization request they submit, irrespective of the outcome of that request.

This policy has significant implications for franchisees. Even if a customer's credit card is declined or the transaction is not approved for any reason, the franchisee will still be charged an Authorization Fee. This can add to the cost of doing business, especially in situations where there are many failed transaction attempts. Franchisees should factor this fee into their financial projections and consider strategies to minimize declined transactions, such as verifying customer information and using fraud prevention tools.

It is important for prospective Even Hotels franchisees to understand this fee structure and its potential impact on their profitability. They should also inquire about the average rate of transaction approvals and denials to better estimate the potential cost of Authorization Fees. Understanding these costs upfront will help franchisees manage their expenses and make informed business decisions.