What is the Even Hotels IHG System Fund Contribution comprised of?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Item 4 of Attachment "A". Licensee agrees and acknowledges that additional royalties may be charged on revenues from any activity if it is added at the Hotel by mutual agreement and it is not now offered at Brand System Hotels generally or it is designed or developed by or for IHG or its Affiliates. The Royalty Fee is solely in consideration of our granting Licensee the franchise conferred by this License and is not in exchange for any goods, services or assistance which may be furnished by IHG.
- (4) IHG System Fund Contribution. "IHG System Fund Contribution" means the assessments paid by Licensee, comprised of the Services Contribution and the Loyalty Program Contribution, for the IHG System Fund Activities (as defined in paragraph 4.G) to be provided by IHG and its Affiliates.
- a. Services Contribution. A monthly Services Contribution in the amount set forth in Item 5 of Attachment "A". The Services Contribution will typically be invested by IHG in activities that, in IHG's sole business judgment as to the long-term interests of the Brand System, strengthen the brand such as awareness advertising, marketing, sales, guest services, reservations, standards, training programs, research, and the development of new or improved services, associated products and platforms, but may also include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs. The Service Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of the Hotel. The Services Contribution does not include costs that Licensee incurs in the acquisition, installation or maintenance of reservations services, equipment or training, or in Licensee's own marketing activities. IHG and its Affiliates are not responsible for any of these costs.
The Services Contribution is subject to change by IHG from time to time. IHG may, on 30 days advance notice, at any time during the term of this License, and from time to time, increase the Services Contribution by up to 1% of Gross Rooms Revenue (as such term is defined on Attachment "A"). If IHG increases the
Services Contribution in this way, then IHG cannot make another discretionary increase again for 24 months after the start of a prior increase.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, the IHG System Fund Contribution consists of two components: the Services Contribution and the Loyalty Program Contribution. This fund is used for IHG System Fund Activities, which are managed by IHG and its affiliates.
The Services Contribution is a monthly fee that IHG typically invests in activities designed to strengthen the Even Hotels brand. These activities include awareness advertising, marketing, sales, guest services, reservations, standards, training programs, and research. IHG may also use the Services Contribution for developing new or improved services, associated products, and platforms, as well as for tactical marketing initiatives focused on short-term revenue enhancement and seasonal marketing programs.
The Loyalty Program Contribution includes an Initial Loyalty Marketing Contribution and a monthly Loyalty Program Contribution, currently known as the "IHG One Rewards Fee." This fee is based on qualifying room rates and other eligible hotel charges for each night of a hotel stay where IHG One Rewards points or frequency miles are awarded. IHG has the discretion to modify the amounts or the terms and conditions of both the Initial Loyalty Marketing Contribution and the Loyalty Program Contribution.