For Even Hotels, what were the proceeds from disposals of contract assets received from an affiliated entity in 2021?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
n) | $ 1,517 | $ 1,656 $ 1,536 | $ (4) $ (11) $ 125 |
4. Related-Party Transactions
Six Continents Hotels, Inc. maintains certain marketing, reservation, and loyalty programs for the benefit of the Systems. Pursuant to the Agreement, all Company assessments to franchisees relating to
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, an affiliated company made payments for contract assets, net of disposals. However, the specific amount for 2021 is not disclosed. The FDD only provides the net amounts for the years ended December 31, 2024, 2023, and 2022, which were $40.3 million, $24.9 million, and $33.0 million, respectively.
Contract assets, in this context, refer to amounts paid to hotel owners to secure franchise agreements, also known as 'key money'. These assets are recorded and then recognized as a deduction to franchise royalty fee revenue over the initial term of the agreement. The payments are made by an affiliated entity on behalf of Even Hotels.
Since the exact proceeds from disposals of contract assets for 2021 are not specified in the provided FDD excerpt, it is recommended that a prospective franchisee ask Even Hotels directly for this information. Understanding the historical trends in contract asset disposals can be valuable in assessing the financial dynamics of the franchise system.