factual

How often can the PMS Provider increase the maintenance and support fee for Even Hotels?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

The PMS provider or SCH will provide you with a third-party license and/or hosting agreement for the use of the PMS software. Therefore, you must sign a third -party license and/or hosting agreement with the PMS provider designated by SCH (see Items 1, 8 and 11). The PMS license agreement includes on-going maintenance and support for the PMS software. The PMS Provider will bill you annually for the support fee. The support fee is included in the overall estimate for the PMS and is more fully described in Item 5 and in the chart above. The PMS Provider may not increase the maintenance and support fee more than once during any calendar year. You must also pay support fees for the other components of property-level systems, such as PMS equipment maintenance, and for other systems which interface to the PMS; such as the telecommunications system, the electronic door locking and keycard system, and the specialized sales software. Hardware and software maintenance fees may vary based on the number of rooms at the Hotel. The fees for local and long-distance telephone service and line charges are not included in the estimated fees on the chart. The costs will vary according to your technology needs, and the costs listed on the chart are an estimate.

Source: Item 6 — OTHER FEES (FDD pages 30–52)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, the PMS (Property Management System) Provider may not increase the maintenance and support fee more than once during any calendar year. This fee covers ongoing maintenance and support for the required PMS software, including upgrades and new versions. Franchisees are billed annually for this support.

This limitation on fee increases provides some predictability for Even Hotels franchisees in managing their technology costs. However, franchisees should still budget for potential increases each year. It is important to note that this restriction applies specifically to the PMS Provider's maintenance and support fee. Other technology-related fees, such as those for PMS equipment maintenance or systems that interface with the PMS, may be subject to different terms and conditions.

Prospective Even Hotels franchisees should carefully review the third-party license and/or hosting agreement with the PMS provider to fully understand the terms and conditions related to maintenance and support fees. Additionally, franchisees should inquire about the typical range of these fees and any factors that could influence future increases. Understanding these costs is crucial for accurate financial planning and ensuring the profitability of the 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.