What was the mark-up cost charged by affiliated companies for Even Hotels in 2023 (in thousands)?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
es for U.S. medical healthcare stop loss and workers' compensation insurance.
The Company recognized in other revenue $61.7 million, $54.0 million and $46.5 million from affiliated comp
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the mark-up cost charged by affiliated companies for the year ended December 31, 2023, was $16.2 million. This is an increase from the $12.7 million in 2022. In 2024, the mark-up cost decreased to $12.9 million.
This mark-up cost represents expenses Even Hotels incurs through transactions and services provided by companies affiliated with the franchisor. These affiliated companies could be providing services such as marketing, supply chain management, or other operational support.
For a prospective franchisee, this figure highlights the financial interactions between Even Hotels and its related entities. It's important to understand what services are covered under these mark-up costs and whether these costs are competitive compared to market rates. Franchisees should inquire about the specific services provided by affiliated companies and the potential for these costs to fluctuate, as well as how these costs might affect the overall profitability of their Even Hotels franchise. Understanding these related-party transactions is crucial for assessing the financial health and transparency of the franchise system.