Is IHG obligated to provide the Next-Gen Payments Solution to Even Hotels during the term of the agreement?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.1 Next-Gen Payments Solution.
During the Term, IHG will provide to Hotel the Next-Gen Payments Solution pursuant to the terms of this Agreement.
- 2.2 Right to Use the Next-Gen Payments Solution.
During the Term, IHG hereby grants Hotel a limited, personal, revocable, nonexclusive, and non-transferable right to access and use the Next-Gen Payments Solution solely for the internal business purposes of Hotel and subject to the terms of this Agreement, including the Third Party Terms.
- 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").
NGP Solution. Hotel will use IHG's Next-Gen Payments Solution for Hotel's processing of card payments.
Term and Extension. This Agreement is effective upon signing, and the term of 48 months will begin upon billing commencement for the Next-Gen Payments Solution at the Hotel ("Term"). At the end of the then-current Term, the Term will automatically extend for an additional 48 months, unless one Party gives written notice to the other Party at least 90 days prior to the end of the Term. IHG will provide one hardware refresh for each extension of the Term.
If Hotel should default on any payment obligation owed under this Agreement, IHG shall have the right to suspend access to and use of the Next-Gen Payments Solution by Hotel.
Hotel desires to procure from IHG, and IHG desires to provide to Hotel, the Next-Gen Payments Solution, pursuant to the terms of this Agreement, that will consist of hardware, software, and services including those provided by the Third Party Providers.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, IHG is obligated to provide the Next-Gen Payments Solution to the hotel during the term of the agreement. Specifically, IHG and the hotel both desire to procure and provide the Next-Gen Payments Solution, which includes hardware, software, and services from third-party providers. The agreement is effective upon signing, with the initial term lasting 48 months from the commencement of billing for the Next-Gen Payments Solution.
During this term, IHG grants the hotel a limited, personal, revocable, nonexclusive, and non-transferable right to access and use the Next-Gen Payments Solution for its internal business purposes, subject to the agreement's terms, including third-party terms. The hotel is expected to use IHG's Next-Gen Payments Solution for processing card payments. The hotel must also 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.
At the end of the initial 48-month term, the agreement automatically extends for another 48 months unless either party provides written notice at least 90 days before the term's end. IHG commits to providing one hardware refresh for each extension of the term. However, IHG can suspend access to the Next-Gen Payments Solution if the hotel defaults on any payment obligations under the agreement.