Must an Even Hotels franchisee sign a third-party license agreement for the use of the POS software?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
be submitted in advance and require written approval from IHG, prior to any materials being purchased, or installed. Any failure or deviations to fully comply with all aspects of this Cable and Infrastructure BOD must be corrected at no additional cost to IHG.
F&B POS System:
EVEN® Hotels brand hotels must utilize an approved POS solution, that meets brand requirements. The estimated initial cost for the POS purchase and installation will range from $35,000 to $45,000, and will include three standard outlets. Pricing will increase with the installation of additional outlets. You must obtain ongoing maintenance and support for the required POS software, including upgrades and new versions. The annual maintenance fee is estimated to be $3,500 to $5,000, based on a typical single brand installation. You must also obtain ongoing equipment maintenance for the POS hardware. The POS provider will bill and collect the fee from you for the required POS hardware / software support. The costs will vary based on the number of rooms at the hotel and according to your technology needs. The POS provider will provide you with a third-party license agreement for the use of the POS software. Therefore, you must sign a third party license agreement with the approved POS provider or with any other POS provider designated by SCH. This license agreement includes on-going maintenance and support for the POS software. The POS provider will bill you annually for the support fee. The POS provider may not increase the maintenance and support fee more than once during any calendar year. You must also pay support fees for the other components of property-level systems, such as P
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, franchisees are required to sign a third-party license agreement for the use of the POS (Point of Sale) software. The FDD specifies that the POS provider will furnish this agreement, which includes ongoing maintenance and support for the software. This agreement is made either with the approved POS provider or another provider designated by SCH (presumably Six Continents Hotels, Inc., the parent company). The POS provider will bill the franchisee annually for the support fee, with the stipulation that the fee cannot be increased more than once per calendar year.
In practical terms, this means that as an Even Hotels franchisee, you will not only need to budget for the initial purchase and installation of the POS system, estimated between $35,000 and $45,000 for three standard outlets, but also for ongoing maintenance and support. The annual maintenance fee is estimated to be between $3,500 and $5,000 for a typical single-brand installation. Furthermore, franchisees are responsible for support fees for other components of property-level systems that interface with the POS, such as the PMS (Property Management System) and sales software.
This requirement ensures that all Even Hotels locations use a standardized and supported POS system, which helps maintain brand consistency and operational efficiency. However, it also means that franchisees have limited choice in selecting their POS provider and must adhere to the terms and conditions of the third-party license agreement. Prospective franchisees should carefully review the terms of the license agreement and understand the full scope of their financial obligations for POS system maintenance and support.