factual
When is the Comfort Letter Processing Fee due for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
ly earned when paid and are not refundable under any circumstances.
ITEM 6 OTHER FEES
| 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 |
| Sales and Marketing | |||
| Services Contribution | 3.5% of GRR (combined marketing, reservations & training fee). | Same as Royalty | Note 2 |
| Initial Marketing Contribution to Loyalty Program | $10.00 per approved guest room. | At same time as 1st Royalty Payment (one- time charge) (Payable to SCH) | Note 3 |
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members. 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members. | Same date as Royalty (Payable to SCH) | Note 3 |
| Local Marketing Programs | Varies depending on actual cost | Varies (Payable to Holiday or 3rd party engaged by Licensee) | Note 4 |
| Promotions Required & Optional Advertising Materials | On request (payable to Holiday) | Note 4 | |
| Third Party Distribution Connection Fees | |||
| Travel Agent Commissions (IHG Commission Services) | 10% (minimum) commission on GRR (or other commission that Holiday designates). | Monthly (Payable to SCH) | Note 5 |
| IHG Ignite Digital Marketing Fees | 2.25% commission on all consumed direct digital revenue booked. | Monthly (Payable to SCH or intermediary) | Note 5 |
| TMC (formerly known as BTA) Revenue Program | Hotels pay an override fee of 2.25% on qualifying consumed room nights only, with a maximum annual payment of $20,000 USD (or equivalent local currency). | Monthly (Payable to SCH) | Note 5 |
| GDS Fees | $6.40 per reservation | Monthly (Payable to service provider) | Note 5 |
| IHG Business Edge Program Booking Fees | 4% of consumed transient revenue booked through the IHG Business Edge Program. IHG One Rewards Measured Standards are | Monthly (Payable to SCH) | Note 5 |
| measured and enforced by the Loyalty Program to ensure consistency in the delivery of the program | |||
| to its members. Standards are based on calendar quarter thresholds. Hotels are measured at the end | |||
| of each calendar quarter for compliance. If a Hotel fails to meet the threshold for a quarter, it will have | |||
| one quarter to cure. If a Hotel that has 300 rooms or less fails to cure, it will move to assessment and | |||
| will be assessed a fee of $1,000 for each standard failed. If a Hotel fails in consecutive quarters, the | |||
| assessment will escalate to $2,000 for a failed third quarter and $3,000 for a failed fourth quarter. The | |||
| assessment is capped at $3,000 per quarter per standard. If a Hotel that has more than 300 rooms | |||
| fails to cure, it will move to assessment and will be assessed a fee of $1,000 for each standard failed. | |||
| If a Hotel fails in consecutive quarters, the assessment will escalate to $2,500 for a failed third quarter | |||
| Type of Expenditure | Amount | Method of Payment and When Due | |
| Application Fee (Note 1) | $75,000 | With application | Holiday |
| Property Improvement Plan | $0 to $10,000 | Before you submit | Holiday |
| (“PIP”) fee (Note 1) | your application | ||
| Land (typically 2.1 to 2.4 | As required | Third parties | |
| acres) (Note 2) | |||
| Building Construction (Note | $14,339,000 to $21,639,000 | As required | Third parties |
| 3) | |||
| Furniture, | $2,077,000 to $2,700,000 | As required | Suppliers |
| Fixtures & Equipment | |||
| (Note 2) (Note 4) | |||
| Operating Supplies and | $293,400 to $381,400 | As required | Suppliers |
| Equipment (Note 5) | |||
| PMS Equipment: Software; Installation & Training; IHG Concerto™ Equipment & Training; NGP/Payments Equipment; Software; Installation & Training. (Note 6) | $24,000 to $29,000 | Cash or commitment letter from SCH approved leasing or financing company before installation | SCH affiliates or 3rd parties |
| TYPE OF FEE | AMOUNT | DUE DATE (Payable to SCH). | REMARKS |
| Guest Internet Access – Bandwidth Service Subscription (IHG Connect) | $1,000 to $3,000 Pricing is estimated and varies based on regional service providers. | Monthly (Payable to SCH) | Note 8 |
| IHG Connect Hardware Software License Renewal | Varies but can range from $3,000-$200,000 | Payable at the date which is five years of the original purchase claim date and every five—year period thereafter | Note 8 |
| Guest Internet Access – Hardware Maintenance & Guest Support (IHG Connect) | $1.50 per guest room. $25.00 per meeting / conference room, plus $20.00 per 2,000 sq. ft. of total meeting space, maximum of $500.00 (meeting room support fees only apply if total meeting space exceeds 2000 sq. ft.). $1,452 estimated cost of 4 access points ("AP") per 100 Guest Conference Space Capacity (one-time charge). SCH approved GIA hardware would need to be purchased from and installed by a certified SCH approved integrator. | Monthly (Payable to SCH approved Integrator) | Note 8 |
| Guest In-Room Entertainment– Hardware, Maintenance, Guest Support, & Content | Hotels will see a monthly recurring charge ("MRC") for the entertainment platform on the monthly invoice at a rate of $3.75 per room, per month for software, maintenance, and $1.00 per room, per month for guest support. $1.00 per room per month | Monthly (Payable to SCH or approved Integrator) Monthly (Payable to SCH or approved Integrator) | Note 8 |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
| ----------------------------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ------------------------ |
| for support. $7.20 per room, per month for content. $1.25 per room, per month for HBO (where required). | Monthly (Payable to SCH or approved Integrator) | ||
| F&B POS Support | $45.00 per workstation per month | Monthly (Payable to an approved supplier) | Note 8 |
| Employee Safety Devices | Initial fee of $125-$150 per room in the first year of installation plus $20.00 to $25.00 per room, per year for software and maintenance support | Annually (Payable to SCH approved supplier) | Note 8 |
| Security Software for Public Access Computers (Business Center) | $495.00 to $525.00 per workstation, per year for software, maintenance, and guest support $315.00 to $399.00 per printer, per year for the "optional" mobile printing feature | Monthly (Payable to SCH or an approved supplier) | Note 8 |
| Ongoing Training IHG Learning Program: Core Subscription/Value-Add and Specialist Training | Learning categorized as core is included within the subscription model and includes critical learning designed to effectively onboard team members, support the operational needs of a hotel, and comply with brand standards to deliver a branded guest experience. The cost is $3,500/yr for EVEN® hotels. Prorated based on month your Hotel opens. For in person classes you must pay trainees' travel and optional/supplemental training expenses. Hotels should allocate annual pre-determined amounts per full-time | Core Subscription fee is payable annually within 30 days of Holiday's invoice. Value add and specialist learning billed upon attending. (Payable to SCH) | Note 9 & Item 11 |
| TYPE OF FEE | AMOUNT employee for optional value add and specialist courses: Managers/Department Heads - $650; Assistant Managers/Supervisors - $450; Frontline colleagues - $250. | DUE DATE | REMARKS |
| -------------------------------------------------------------------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------------------------------------------------- | ------------ |
| Subsequent Training Materials | $0 - $5,000 per hotel for all trainees combined | As incurred (Payable to Holiday/SCH) | Note 9 |
| IHG® Americas Premium Investors and Leadership Conference | Up to $2,500 per attendee, not including travel, lodging or other expenses. | Invoiced at time of registration (Payable to SCH) | Note 9 |
| Operations | |||
| Tax on Sales/Gross Receipts or |
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, there is no mention of a "Comfort Letter Processing Fee" or any similar fee. The FDD does outline various fees, such as the Application Fee of $75,000 due with the application, and other fees related to services, marketing, and technology, which are typically paid monthly.
Other fees that an Even Hotels franchisee can expect to pay include the Property Improvement Plan (PIP) fee, ranging from $0 to $10,000, due before submitting the application. There are also ongoing fees such as the Royalty fee, calculated as 5% of Gross Rooms Revenue (GRR), and a Services Contribution of 3.5% of GRR, both payable monthly.
Because the FDD does not list a Comfort Letter Processing Fee, it is important for potential Even Hotels franchisees to clarify with the franchisor whether such a fee exists, what it covers, and when it is due. This information is crucial for accurately assessing the total investment and ongoing costs associated with the franchise.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.