What is the procedure Even Hotels will follow if a hotel has unpaid invoices?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel will pay interest on all amounts that become past due at the lesser of (a) one percent (1%) per month; or (b) the highest rate allowed by Law.
- 3.4 Payment Default.
If Hotel should default on any payment obligation owed under this Agreement, IHG shall have the right to direct HotelKey to suspend access to and use of the PMS Solution by Hotel.
Additionally, Hotel will be responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
Any unpaid invoices will be handled as follows (the "Unpaid Invoice Procedure"): All unpaid invoices by a Hotel will be subject to Company's payment/credit terms and conditions applicable to such Hotel. Furthermore, Company may refuse to deliver further any Company Beverages to the affected Hotel until the unpaid invoice is satisfied.
Any unpaid invoices by a Hotel will be handled in accordance with the Unpaid Invoice Procedure set forth above.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, several procedures are in place regarding unpaid invoices. The hotel will pay interest on all overdue amounts, calculated at the lesser of 1% per month or the highest rate permitted by law. If the hotel defaults on any payment obligation, IHG has the right to direct HotelKey to suspend the hotel's access to and use of the PMS (Property Management System) Solution. The hotel is also responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
Furthermore, in the context of beverage dispensers, any unpaid invoices will be subject to the company's payment/credit terms and conditions applicable to the specific hotel. The company may also refuse to deliver any further company beverages to the affected hotel until the unpaid invoice is settled. This Unpaid Invoice Procedure applies to charges for both leased dispensers and special service calls.
These policies highlight the importance of maintaining timely payments to avoid service interruptions, financial penalties, and potential legal action. Prospective Even Hotels franchisees should be aware of these financial obligations and ensure they have sufficient capital and management practices in place to meet payment deadlines.