What was the mark-up cost charged by affiliated companies for Even Hotels in 2022 (in thousands)?

According to Even Hotels' 2025 Franchise Disclosure Document, the company recognized mark-up costs charged by affiliated companies of $12.7 million for the year ended December 31, 2022. This indicates that Even Hotels engages in transactions with affiliated entities, and these transactions include a mark-up cost.

For a prospective franchisee, this means that Even Hotels' financial performance is influenced by its relationships with affiliated companies. The mark-up cost is an expense that impacts the overall profitability of Even Hotels. It is important to note that the mark-up cost can fluctuate year to year, as evidenced by the $16.2 million in 2023 and $12.9 million in 2024.

Understanding the nature of these affiliated transactions and the basis for the mark-up is crucial for assessing the financial health of Even Hotels. A potential franchisee should investigate what services or goods are being provided by the affiliated companies in return for these mark-up costs. This due diligence will help in evaluating whether these costs are reasonable and provide value to the franchise system.

It is also worth noting that these related-party transactions are common in franchise systems, where the parent company provides various services to its franchisees through affiliated entities. However, the transparency and fairness of these transactions are key considerations for franchisees. Franchisees should seek clarification from Even Hotels regarding the details of these transactions to ensure they are conducted at arm's length and do not unfairly burden the franchisees.