How is the early termination fee for the NGP program calculated for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are required to use the Next-Gen Payment (NGP) program or any successor payment program implemented by SCH. Upon activating the NGP program, franchisees enter into a Next-Gen Payment Agreement with SCH, which involves monthly billing and support for the hardware and software.
The early termination fee for the NGP program is calculated based on the terms of the Next-Gen Payment Agreement. Specifically, if a franchisee terminates the agreement for any reason, they are liable to pay IHG an early termination fee. This fee is equal to 50% of the NGP monthly fee, multiplied by the number of remaining monthly payments in the term.
In practical terms, this means that if an Even Hotels franchisee decides to terminate the NGP agreement early, they will need to pay a significant portion of the remaining fees. For example, if the monthly NGP fee is $100 and there are 12 months remaining in the term, the early termination fee would be 50% of $100 (which is $50) multiplied by 12, resulting in a $600 termination fee. Franchisees should carefully consider the implications of this early termination fee before entering into the NGP agreement.