Can IHG increase the transaction fee for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel will pay IHG a fee of $0.06 per transaction, where "transaction" means each of (i) an on-line authorization request, (ii) a captured request that does not have a corresponding on-line authorization (examples include verbal authorizations, below floor limit or offline requests), (iii) a return request, and (vi) a void request.
For most transactions, this fee will be collected by the merchant service provider as part of the settlement reconciliation.
IHG reserves the right to lower (but not to increase) this transaction fee upon notice to Hotel.
In addition, Hotel will pay IHG a support fee of $140 per month.
IHG may modify this support fee by no more than 10% annually upon notice to Hotel.
AGREED BY IHG: AGREED BY HOTEL:
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, IHG (InterContinental Hotels Group) reserves the right to lower the transaction fee of $0.06 per transaction, but they cannot increase it. This fee applies to each online authorization request, captured request without online authorization, return request, and void request. For most transactions, this fee is collected by the merchant service provider as part of the settlement reconciliation.
In addition to the transaction fee, Even Hotels franchisees must also pay IHG a monthly support fee of $140. IHG has the option to modify this support fee, but the increase cannot exceed 10% annually, and they must provide notice to the hotel.
Furthermore, the FDD mentions a Next-Gen Payments (NGP) Transaction Fee, and IHG also reserves the right to lower, but not increase, this fee. This NGP system replaces the previous secure payment solution and involves third-party providers like FreedomPay, Oracle, Hewlett-Packard, and Fiserv. The fees for the Next-Gen Payments Solution are detailed on the cover page of the agreement, and franchisees may incur a reschedule fee if a scheduled implementation is not completed due to their actions or inaction.