What happens if an Even Hotels hotel fails its opening inspection?

According to Even Hotels' 2025 Franchise Disclosure Document, if a conversion hotel fails its opening inspection, Holiday, the parent company, may charge the franchisee $5,000 plus expenses for each re-evaluation and re-inspection. This fee covers the cost of re-evaluating the property and conducting another inspection to ensure compliance with Even Hotels' standards. This policy applies specifically to conversion hotels, which are existing properties being converted into an Even Hotels franchise.

This requirement underscores the importance of meeting all Property Improvement Plan (PIP) requirements before opening an Even Hotels franchise. The PIP outlines the necessary upgrades, construction, and furnishing needed to meet the brand's standards. Franchisees should ensure they allocate sufficient time and resources to complete all PIP requirements and pass the initial opening inspection to avoid incurring additional re-evaluation and re-inspection fees.

It is important to note that this fee is in addition to other potential fees associated with pre- and post-opening consultations and inspections. These additional fees, payable to SCH (presumably a subsidiary of Holiday), will not exceed $5,000 per visit, plus expenses for travel, living, and lodging. Franchisees should factor in these potential costs when budgeting for the opening of their Even Hotels franchise.