Does the estimated NGP monthly fee for Even Hotels include applicable taxes?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.5 Taxes.
All Taxes resulting from the provision of the PMS Solution under this Agreement shall be the responsibility of Hotel.
If IHG or an IHG Affiliate is required to pay any such Taxes or penalties or interest relating thereto, IHG or an IHG Affiliate will provide an invoice for such amounts and Hotel will pay such amounts within thirty (30) days of the date of the invoice.
- 3.6 Withholding Taxes.
If Hotel is required to pay any applicable withholding tax payable to the relevant local tax authorities, Hotel shall (a) pay the applicable PMS Solution fee less the amount of the withholding tax; (b) make such required withholding tax payment to the local tax authorities; (c) within thirty (30) days after the date of payment of any
such withholding tax payment, provide IHG with the original or a certified copy of a receipt evidencing payment thereof to the relevant local tax authority; and (d) take all action reasonably required to enable IHG to obtain any tax credit which may be available to it.
- 3.7 Currency.
All fees charged under this Agreement (including any Taxes) will be calculated based on the currency set forth on the cover page of this Agreement but will be invoiced in the local currency used for the existing payment terms between IHG and Hotel under the Hotel Agreement.
Where the local currency is anything other than the United States Dollar, the amounts owed by Hotel in the applicable local currency will be based on the conversion of such local currency to United States Dollars based on the currency conversion practices employed for payments under the Hotel Agreement.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the hotel is responsible for all taxes resulting from the Next-Gen Payments Solution (NGP). IHG, the franchisor, will invoice the hotel for these taxes if IHG or an IHG affiliate is required to pay any such taxes, penalties, or interest related to them. The hotel must pay these amounts within thirty days of the invoice date. Therefore, the NGP monthly fee does not include applicable taxes.
If the hotel is required to pay any applicable withholding tax to local tax authorities, the hotel will pay the NGP fee less the withholding tax amount. The hotel must then make the withholding tax payment to the local tax authorities and provide IHG with proof of payment within thirty days to enable IHG to obtain any tax credit.
All fees charged under the agreement, including any taxes, will be calculated based on the currency set forth on the cover page of the agreement but will be invoiced in the local currency used for the existing payment terms between IHG and the hotel under the Hotel Agreement. Where the local currency is anything other than the United States Dollar, the amounts owed by the hotel in the applicable local currency will be based on the conversion of such local currency to United States Dollars based on the currency conversion practices employed for payments under the Hotel Agreement.