factual

What is the monthly support fee that Even Hotels pays to IHG?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

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Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are required to pay a monthly support fee to IHG (InterContinental Hotels Group). This fee is set at $140 per month. IHG retains the right to modify this support fee, but with a limitation: any annual adjustment cannot exceed 10% of the current fee. This means the fee could increase or decrease, but the change will be capped at 10% of the $140, or $14 annually.

For a prospective Even Hotels franchisee, this $140 monthly fee represents an ongoing operational expense. It's important to factor this cost into the overall financial projections for the franchise. While the fee itself may seem relatively small, it's crucial to understand that IHG can adjust it annually, which could lead to incremental increases over time. Franchisees should budget for potential increases to avoid surprises.

It is fairly common for franchisors to charge monthly support or technology fees to cover ongoing services and system maintenance. The fact that IHG can only increase the fee by a maximum of 10% annually provides some predictability. Franchisees should inquire about the specific services and support covered by this fee to assess its value. Understanding what the fee covers will help in evaluating the overall cost-benefit of the franchise.

Prospective franchisees should also consider this fee in relation to other fees and expenses outlined in the FDD. A comprehensive financial analysis is essential to determine the true cost of operating an Even Hotels franchise and to ensure profitability. It would be prudent to ask IHG for a detailed breakdown of how the support fee is utilized and what specific services it funds to make an informed decision.

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.