What costs does the commission Holiday receives from vendors' sales to Even Hotels offset?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
opens, SCH may determine to fund your purchases from approved suppliers and then invoice you. You must reimburse SCH for these purchases. If Holiday funds your purchase before your Hotel opens, Holiday will not receive fees from approved suppliers.
In some instances, Holiday receives a small commission from vendors' sales to offset Holiday's costs of implementing the SRD Program. These costs include professional design services for creating new décor schemes for Holiday's licensees, prototype room development and testing, specifications development, negotiating and contracting services for items that the licensee may buy through this program, web site updating and maintenance, and licensee support service expenses
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Holiday receives commissions from vendors' sales, ranging from 0.5% to 3% for SRD (Standard Room Décor) items, to offset the costs of implementing the SRD Program. For the year ending December 31, 2024, these commissions totaled $5,600,000.
These commissions are specifically used to cover several key areas. These areas include professional design services for creating new décor schemes tailored for Holiday's licensees, which ensures that the brand maintains a consistent and appealing aesthetic. The commissions also fund prototype room development and testing, allowing Holiday to experiment with and refine room designs before they are rolled out to franchisees.
Additionally, the commissions support the development of specifications, negotiating and contracting services for items franchisees may purchase through the SRD program, website updating and maintenance, and licensee support service expenses. By offsetting these costs with vendor commissions, Holiday aims to provide comprehensive support and resources to Even Hotels franchisees, helping them maintain brand standards and operational efficiency.