What is the interest rate that an Even Hotels location will pay on past due amounts?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.3 Interest on Late Payments.
Hotel will pay interest on all amounts that become past due at the lesser of (a) one percent (1%) per month; or (b) the highest rate allowed by Law.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, hotels will pay interest on all past due amounts. The interest rate will be the lesser of (a) one percent (1%) per month or (b) the highest rate allowed by law. This applies to fees associated with the PMS (Property Management System) Solution.
This means that if an Even Hotels franchisee fails to pay invoices within the agreed-upon timeframe, they will incur interest charges on the outstanding balance. The specific interest rate will depend on the prevailing legal limits in their jurisdiction, but it will not exceed 1% per month.
It is important for prospective Even Hotels franchisees to understand their payment obligations and ensure timely payments to avoid these interest charges. Additionally, failure to meet payment obligations could lead to IHG (InterContinental Hotels Group) suspending the hotel's access to and use of the PMS Solution. The franchisee would also be responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.