What fees are Even Hotels responsible for in addition to the prices quoted in the Agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel Owner shall be responsible for any monthly service fee charged by the local phone vendor and/or long distance carrier, as well as for any programming expenses associated with setting up the IHG Voice Reservation Service link and/or for subsequent maintenance/repair expenses incurred at the Hotel level.
In addition to the operator assisted link, an automated link may be established with the Hotel's selected long distance carrier, which automatically diverts to the Office all incoming reservations calls.
Hotel must secure and maintain, at its cost, a dedicated, toll free reservation line with Hotel's long distance carrier.
- 4.Cost of Services.
Hotel Owner shall pay to SCH, in consideration for the services provided by SCH pursuant to this Agreement, the amount of $7.65 per net booking on all reservations booked by the Office for the Hotel ("Fee").
This Fee will also be applied to any net bookings made by the Office from Hoteldirect calls transferred to public InterContinental Hotels Group CRO telephone numbers.
The Fee may be modified by SCH once per calendar year upon thirty (30) days prior written notice to Hotel Management.
Any increases to the Fee will not exceed ten percent (10%) of the previous fee.
SCH shall bill Hotel monthly for the Fees.
- 2.4 Third Party Terms.
Hotel shall comply with the terms and conditions set forth in Attachment 1 (Third Party Terms – FreedomPay) and Attachment 2 (Third Party Terms – HPFS) to this Agreement (collectively, the "Third Party Terms").
3.0 FEES, INVOICING, AND PAYMENTS.
3.1 Fees. The fees for the Next-Gen Payments Solution provided under this Agreement are set forth on the cover page of this Agreement. In addition, if a scheduled implementation is not completed and reserved resources are not utilized due to Hotel's action or inaction, Hotel will pay a reschedule fee. The obligation of Hotel to pay all fees is absolute and unconditional and, except as expressly provided, shall not be subject to any abatement, deferment, reduction, defense, counterclaim, set-off, or recoupment.
IHG shall invoice Hotel each month for the fees associated with the Next-Gen Payments Solution set forth on the cover page of this Agreement.
Hotel will pay interest on all amounts that become past due at the lesser of (a) one percent (1%) per month; or (b) the highest rate allowed by Law.
All Taxes resulting from the provision of the PMS Solution under this Agreement shall be the responsibility of Hotel.
- (1) Application Fee. Licensee has paid IHG the nonrefundable Application Fee as set forth in Item 3 of Attachment "A").
- (2) Rooms Addition Fee. A standard application fee for additional guest rooms or suites, as set forth in IHG's then current franchise disclosure document for Brand System hotels, will be charged upon application for any guest rooms or suites to be added to the Hotel.
- (3) Royalty Fee. A monthly Royalty Fee in the amount set forth in Item 4 of Attachment "A". Licensee agrees and acknowledges that additional royalties may be charged on revenues from any activity if it is added at the Hotel by mutual agreement and it is not now offered at Brand System Hotels generally or it is designed or developed by or for IHG or its Affiliates. The Royalty Fee is solely in consideration of our granting Licensee the franchise conferred by this License and is not in exchange for any goods, services or assistance which may be furnished by IHG.
- (4) IHG System Fund Contribution. "IHG System Fund Contribution" means the assessments paid by Licensee, comprised of the Services Contribution and the Loyalty Program Contribution, for the IHG System Fund Activities (as defined in paragraph 4.G) to be provided by IHG and its Affiliates.
- a. Services Contribution. A monthly Services Contribution in the amount set forth in Item 5 of Attachment "A".
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are responsible for several fees beyond those initially outlined in their agreements. Specifically, the Hotel Owner is responsible for monthly service fees charged by local phone vendors and/or long-distance carriers. They also bear the programming expenses for setting up and maintaining the IHG Voice Reservation Service link at the hotel level. Additionally, franchisees must secure and maintain a dedicated, toll-free reservation line with their chosen long-distance carrier at their own cost.
Even Hotels franchisees are also obligated to pay a fee of $7.65 per net booking on all reservations made by the Office for the Hotel. This fee applies to net bookings made by the Office from Hoteldirect calls transferred to public InterContinental Hotels Group CRO telephone numbers. It's important to note that this fee may be modified by SCH (presumably a related entity) once per calendar year, with a 30-day prior written notice to Hotel Management. However, any increases to the fee cannot exceed 10% of the previous fee. SCH will bill the Hotel monthly for these fees.
Furthermore, franchisees must comply with the terms and conditions outlined in Attachment 1 (Third Party Terms – FreedomPay) and Attachment 2 (Third Party Terms – HPFS). If a scheduled implementation of the Next-Gen Payments Solution is not completed due to the Hotel's actions or inaction, the Hotel will be required to pay a reschedule fee. The obligation to pay all fees is absolute and unconditional, with limited exceptions. IHG will invoice the Hotel monthly for fees associated with the Next-Gen Payments Solution, and payment is due within 30 days of the invoice date. Late payments will incur interest at a rate of 1.5% per month or the highest rate allowed by law, whichever is less. The Hotel is also responsible for all taxes resulting from the Next-Gen Payments Solution.
Finally, the Even Hotels franchisee is responsible for an application fee, as detailed in Item 3 of Attachment "A". A standard application fee is charged for adding guest rooms or suites to the Hotel, as specified in IHG's current franchise disclosure document. Franchisees also pay a monthly Royalty Fee, as outlined in Item 4 of Attachment "A", with potential additional royalties for new activities added at the Hotel. Additionally, franchisees contribute to the IHG System Fund, which includes a monthly Services Contribution, as detailed in Item 5 of Attachment "A", to support brand-strengthening activities. These fees cover a range of services and obligations that franchisees must budget for in addition to the initial franchise costs.