What is the condition for Even Hotels to be required to use NGP or such successor payments program?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon activation of the NGP program at your Hotel, you will enter into a Next-Gen Payment Agreement with SCH (See Exhibit G-4). SCH will immediately bill you monthly and administer support for the hardware and software. All Hotels are required to use NGP or such successor payments program as may be implemented by SCH. Pursuant to the terms of the Next-Gen Payment Agreement, licensee will be liable for payment to IHG of an early termination fee for any reason equal to (x) 50% of the NGP monthly fee, multiplied by (y) the remaining monthly payments in the term.
Each licensee will be required to enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, and a participation agreement with - SCH (see Exhibit G-4). Your monthly NGP fee may increase according to the terms of the NGP agreement signed at install (no more than a 5% increase from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to the 2025 FDD, all Even Hotels are required to use the Next-Gen Payment (NGP) program, or any successor payment program implemented by SCH (presumably, Six Continents Hotels, Inc.). This requirement is triggered upon the activation of the NGP program at the franchisee's hotel. Once activated, the franchisee will enter into a Next-Gen Payment Agreement with SCH and will be billed monthly for the hardware and software, with SCH administering support.
This means that as an Even Hotels franchisee, you don't have a choice about whether to use the NGP or its replacement once it's activated at your location. You're obligated to adopt the system and pay the associated monthly fees. It's important to review Exhibit G-4, referenced in the FDD, to fully understand the Next-Gen Payment Agreement and its terms.
Furthermore, the FDD states that early termination of the Next-Gen Payment Agreement results in a fee. The franchisee will be liable to IHG for an early termination fee equal to 50% of the NGP monthly fee, multiplied by the number of remaining months in the term. This highlights the importance of understanding the commitment and potential costs associated with this payment system before entering into the franchise agreement. The monthly NGP fee may increase (no more than 5% from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.