Where will Holiday maintain all Services Contribution sums paid by Even Hotels franchisees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday will maintain all Services Contribution sums paid by you, other Brand System licensees and company owned hotels, plus any interest or other income earned from these contributions, in a separate account from other funds. Holiday will not use these monies to defray any of its general operating expenses, except for the reasonable administrative costs and overhead expenses Holiday incurs in directing and administering the Reservation System, and Holiday's sales, marketing and training programs.
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, Holiday will maintain all Services Contribution sums paid by Even Hotels franchisees, other Brand System licensees, and company-owned hotels in a separate account from other funds. Any interest or other income earned from these contributions will also be included in this account.
Holiday states that these monies will not be used to defray any of its general operating expenses. However, Holiday can use the funds to cover reasonable administrative costs and overhead expenses incurred in directing and administering the Reservation System, as well as Holiday's sales, marketing, and training programs.
This arrangement ensures that the Services Contributions are specifically allocated for the benefit of the Even Hotels system, although Holiday retains discretion over the precise application of these funds within the defined parameters. This is a fairly typical arrangement in franchising, where marketing funds are collected and managed centrally to promote the brand as a whole.