What is the fee for each re-evaluation and re-inspection if an Even Hotels hotel fails its opening inspection?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
e Application Fee is nonrefundable.
PROPERTY IMPROVEMENT PLAN "PIP":
Before you submit an application for a conversion, re-licensing, change of ownership or brand change, you must arrange for Holiday to conduct an inspection of the Hotel so that Holiday can prepare a PIP for the upgrading, construction and furnishing of the Hotel in accordance with the then-current Standards. There is a nonrefundable $10,000 fee for the inspection of your Hotel and the preparation of the PIP (see also Item 6) due at the time the PIP is prepared. In the case of a conversion hotel, Holiday will not authorize your Hotel to open until you complete all PIP requirements, including submission of plans before the start of construction in accordance with the dates specified in your License and Attachment "B" of your License (see Item 11). In the event the hotel fails its opening inspection, Holiday m
Source: Item 5 — INITIAL FEES (FDD pages 27–30)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, if a conversion hotel fails its opening inspection, Even Hotels may charge the franchisee $5,000 plus expenses for each re-evaluation and re-inspection. This fee covers the costs associated with Holiday's (the parent company) personnel revisiting the property to assess the reasons for the failed inspection and to verify that the necessary corrections have been made. Expenses include travel, living, and lodging.
This fee is in addition to the initial $10,000 inspection fee paid for the Property Improvement Plan (PIP). The PIP outlines the upgrades, construction, and furnishing required to meet Even Hotels' standards for a conversion, re-licensing, change of ownership, or brand change. Franchisees should ensure they fully understand and adhere to the PIP requirements to avoid failing the initial inspection and incurring these additional re-evaluation and re-inspection fees.
It is important to note that this fee applies specifically to conversion hotels. New development hotels may have different fees associated with inspections and compliance. Franchisees should clarify the inspection process and associated fees for their specific type of Even Hotels property during the due diligence process.