For Even Hotels, what is included in the definition of 'Gross Revenue' for the purposes of maintenance and repair funding?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
(4) For purposes of this paragraph 13.O. the following definitions apply:
(a) "Gross Revenue" means all revenues and income of any nature derived directly or indirectly from the Hotel or from the use or operation thereof, including without limitation room sales; food and beverage sales; telephone, fax and internet revenues; rental or other payments from lessees, subleases, concessionaires and others occupying or using space or rendering services at the Hotel (but not the gross receipts of such lessees, subleases or concessionaires); and the actual cash proceeds of business interruption, use, occupancy or similar insurance.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, 'Gross Revenue' is defined for the purpose of funding ordinary and extraordinary maintenance, repair, capital improvements, and renovations of the hotel. This definition encompasses all revenues and income derived directly or indirectly from the hotel's operation.
Specifically, the definition includes revenue from room sales, food and beverage sales, telephone, fax, and internet services. It also covers rental payments or other income received from lessees, subleases, concessionaires, and others who occupy or provide services at the hotel. However, it explicitly excludes the gross receipts of these lessees, subleases, or concessionaires themselves.
Furthermore, the definition of 'Gross Revenue' includes the actual cash proceeds received from business interruption, use, occupancy, or similar types of insurance. This comprehensive definition ensures that a wide range of income sources are considered when calculating the funds available for maintaining and improving the Even Hotels property.