To whom are the Even Hotels Local Marketing Programs fees payable?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty | |||
| Royalty | 5% of Gross Rooms Revenue (“GRR”). | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
| Casualty Royalty | 2% of GRR based on average GRR for preceding 12 months | Monthly, on the 15th of the following month (payable to Holiday) | Note 1 |
| Sales and Marketing | |||
| Services Contribution | 3.5% of GRR (combined marketing, reservations & training fee). | Same as Royalty | Note 2 |
| Initial Marketing Contribution to Loyalty Program | $10.00 per approved guest room. | At same time as 1st Royalty Payment (one- time charge) (Payable to SCH) | Note 3 |
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members. 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members. | Same date as Royalty (Payable to SCH) | Note 3 |
| Local Marketing Programs | Varies depending on actual cost | Varies (Payable to Holiday or 3rd party engaged by Licensee) | Note 4 |
| Promotions Required & Optional Advertising Materials | On request (payable to Holiday) | Note 4 |
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the fees for Local Marketing Programs are payable to either Holiday or a third party engaged by the licensee. The amount varies depending on the actual cost of the program, and the due date also varies. This means that as an Even Hotels franchisee, you may be required to pay for local marketing initiatives, and the recipient of those payments will depend on whether you are utilizing Holiday's resources or working with an independent third-party vendor.
The FDD specifies that franchisees may choose to participate in local and regional marketing programs, advertising cooperatives, and related activities, but these are at the franchisee's expense and subject to Holiday's requirements. Holiday may impose reasonable charges for advertising materials ordered from them for these programs. This indicates that Even Hotels franchisees have some flexibility in their local marketing efforts but must adhere to the franchisor's guidelines and may incur costs for materials if sourced through Holiday.
It is important for prospective Even Hotels franchisees to understand the potential costs associated with local marketing programs and to clarify with the franchisor the extent to which participation is mandatory versus optional. Additionally, franchisees should inquire about the criteria for selecting third-party vendors and any restrictions or approvals required by Holiday. Understanding these details will help franchisees budget effectively for marketing expenses and ensure compliance with the franchise agreement.