What is the maximum fee for Plan default that Even Hotels can be assessed?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
y has no obligation to respond within a certain time frame, it expects to do so within 45 to 60 days from receipt of your request. Holiday may require certain information, tests and inspections, at no expense to Holiday, as a condition of approval.
Holiday requires you to hire qualified, licensed, professional advisors with hotel experience in the form of a project team, which must consist of an interior designer with upscale or boutique hotel brand experience and may consist of, depending on complexity and scope of the work, an architect, engineer, art consultant, lighting consultant, or other related specialist when building or renovating an IHG hotel. If you cannot find such licensed professional help, contact your Openings Regional Director. All architects and interior designers must be approved by Holiday prior to the project commencing. Any design work submitted by unqualified individuals hired by you will be rejected and your Hotel can be subject to Plan default, resulting in an assessment of fees under the terms of your Lic
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a franchisee may be subject to a Plan default if design work is submitted by unqualified individuals hired by the franchisee. This can occur when building or renovating an IHG hotel if the franchisee does not hire qualified, licensed, professional advisors with hotel experience, such as an interior designer with upscale or boutique hotel brand experience, or an architect or engineer.
The FDD states that the fee for such a Plan default will be up to $5,000. Even Hotels retains the right to require the franchisee to remove any non-approved product installed in the hotel that has not been explicitly approved in writing by IHG Plan Review before installation.
This means that Even Hotels franchisees need to ensure they use only Holiday-approved professional advisors during hotel construction or renovation. Failure to do so could result in a Plan default, leading to a fee of up to $5,000 and the potential removal of non-approved products at the franchisee's expense. This highlights the importance of adhering to Holiday's standards and specifications to avoid incurring additional costs and penalties.