How much can the Technology Services Fee for Even Hotels be increased in a calendar year?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Technology Services Fee. A monthly Technology Services Fee as set forth in Item 6 of Attachment "A" and any other fees as set out in the Master Technology Services Schedule in Attachment "D" hereto. The Technology Services Fee will be used by IHG to cover costs and investments that, in IHG's sole discretion, support the development and maintenance of IHG's technology systems. The Technology Services Fee may be increased in IHG's reasonable discretion, but in no case shall any such increase in any calendar year exceed 10% of the fee in effect at the beginning of that year. The Technology Services Fee does not include the cost, installation, maintenance or repair of any technology equipment at the Hotel.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Technology Services Fee can be increased at IHG's reasonable discretion, but any increase in a calendar year cannot exceed 10% of the fee in effect at the beginning of that year. This fee is used by IHG to cover costs and investments that support the development and maintenance of IHG's technology systems. The Technology Services Fee does not cover the cost, installation, maintenance, or repair of any technology equipment at the hotel itself.
For a prospective Even Hotels franchisee, this means that the monthly Technology Services Fee, detailed in Item 6 of Attachment "A" and the Master Technology Services Schedule in Attachment "D", could increase by up to 10% each year. This increase is determined by IHG, and franchisees should factor in potential increases when budgeting. While the fee supports IHG's technology systems, franchisees are responsible for their own hotel's technology equipment costs.
It's important for franchisees to understand that IHG has the discretion to increase this fee, and while there is a cap on the annual increase, it can still impact the overall cost of operations. Franchisees should regularly review the Master Technology Services Schedule in Attachment D to stay informed about the current fees and any potential changes. Understanding these technology costs is crucial for managing the financial aspects of the franchise.