Where in the Even Hotels FDD is the Services Contribution summarized?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
l in connection with the Brand System or in connection with any business activities of its parents, subsidiaries, divisions or affiliates; and
- (f) make available to you consultation and advice pertaining to problems you encounter in operations, facilities and marketing.
Services Contribution; Advertising, Marketing and Promotion:
Hotels that SCH owns and manages and all Brand System licensees must pay the Services Contributions specified in paragraph 3.B of the License and summarized in Item 6 of this disclosure document. Holiday will use these funds as it determines to develop, support and/or administer marketing, reservation and training programs. The Services Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of your Hotel. Holiday and its affiliates are not responsible for any of these costs. Funds from Services Contributions will typically be invested in activities that strengthen the brand such as awareness advertising, research, and the development of new or improved services, but may include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs. The Services Contributions do not include costs which you incur in the acquisition, installation or maintenance of reservations services, equipment or training, or in your own marketing activities. Holiday can change the Services Contribution from time to time. Holiday may, on 30 days advance written notice, at any time during the term of your License, and from time to time, increase the Services Contribution by up to 1% of Gross Rooms Revenue. If Holiday increases the Services Contribution in this way, then Holiday cannot make another discretionary increase again for 24 months after the start of a prior increase. Holiday may increase the Services Contribution by a maximum of 2% of Gross Rooms Revenue over the term of your License.
Funds used for marketing programs will be used for developing, preparing, producing, directing, administering, conducting, maintaining and disseminating advertising, marketing, promotional, and public relations materials, programs and campaigns, publishing a directory of hotels and conducting market research. Advertising conducted under Holiday's marketing programs may be national, regional or local in scope. Holiday will use all types of media that it determines are appropriate, including print, radio, television and outdoor billboards. Any advertising Holiday creates will be created either by its inhouse advertising department or outside advertising agency.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Item 11 discusses the Services Contribution. Specifically, it mentions that hotels owned and managed by SCH (presumably the parent company) and all Brand System licensees must pay the Services Contributions, which are specified in paragraph 3.B of the License Agreement and summarized in Item 6 of the FDD. These funds are used by Holiday (likely a subsidiary or affiliate) to develop, support, and administer marketing, reservation, and training programs. The Services Contribution cannot be used for the costs of maintaining, repairing, modernizing, renovating, or upgrading the hotel. Funds are typically invested in activities that strengthen the brand, such as awareness advertising, research, and the development of new or improved services, but may include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs.
The FDD also states that Holiday can change the Services Contribution from time to time, with the ability to increase it by up to 1% of Gross Rooms Revenue with 30 days' advance written notice. However, Holiday cannot make another discretionary increase for 24 months after the start of a prior increase, and the maximum increase over the term of the license is 2% of Gross Rooms Revenue.
In the fiscal year ended December 31, 2024, the FDD specifies how the marketing funds were allocated: 49% for media, advertising, promotions, and marketing programs, 16% for sales, 6% for hotel performance support, 5% for administration, and 24% for other costs. The document also clarifies that unless a franchisee participates in optional marketing programs, Holiday and its affiliates will not receive payment from additional marketing contributions other than those mentioned in paragraph 3 of the License and Items 6 and 8 of the FDD.