factual

What is the minimum frequency with which Even Hotels franchisees must replace the PMS hardware and software?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

Hotels will operate a computerized property management system (PMS) that has been certified by SCH and must maintain the PMS in conformance with the business and performance standards of SCH. The PMS must have a database schema and shell which is approved by SCH, in order for the interface from the PMS to the CRS to work correctly. Hotels will be responsible for establishing and maintaining proper application access control to align with Payment Card Industry Data Security Standards (PCI-DSS). Operating systems, database, and other programs must be maintained with current approved security patches that are fully supported by the software vendors. The PMS must be periodically updated and maintained to conform to SCH approved software versions, technology advancements and security requirements. This may require certain hardware and/or software components to be replaced or upgraded. At a minimum, the PMS hardware and software must be replaced at least every 48 months. PMS hardware includes server(s), workstations, printers, monitors, ups, back-up device, and associated network components.

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, franchisees must replace the Property Management System (PMS) hardware and software at least every 48 months. This requirement ensures that the PMS remains up-to-date with approved software versions, technology advancements, and security requirements as determined by SCH. The PMS hardware includes servers, workstations, printers, monitors, UPS (uninterruptible power supply), backup devices, and associated network components.

This regular replacement cycle has significant implications for Even Hotels franchisees. It means they must budget for these recurring technology expenses every four years, which can be substantial considering the scope of hardware involved. Failing to comply with this requirement could result in the franchisee not meeting the brand's standards for technology and security, potentially leading to penalties or loss of the franchise.

Even Hotels franchisees should factor these mandatory replacements into their long-term financial planning. While the FDD does not specify the exact cost of replacement, it is crucial for prospective franchisees to discuss these costs with the franchisor and current franchisees to get a realistic estimate. This will help in accurately forecasting the total investment and operational expenses associated with running an Even Hotels franchise.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.