For Even Hotels, what is the process for SCH to fund purchases from approved suppliers before the Hotel opens?

According to Even Hotels' 2025 Franchise Disclosure Document, SCH (presumably referring to Six Continents Hotels) may choose to fund a new franchisee's purchases from approved suppliers before the hotel opens. If SCH decides to fund these purchases, it will then invoice the franchisee, who is then responsible for reimbursing SCH for the amounts paid. The FDD specifies that if SCH funds these initial purchases, Holiday (presumably referring to Holiday Inn) will not receive fees from the approved suppliers.

This arrangement could be beneficial for a new Even Hotels franchisee by alleviating some of the initial financial burden of opening a new location. Instead of paying suppliers directly upfront, the franchisee would have a period to reimburse SCH, potentially easing cash flow during the critical opening phase. However, it's important to note that this funding is not guaranteed; it is at SCH's discretion.

It is also important to note that the franchisee is still responsible for paying back all the funded purchases to SCH. This arrangement simply changes the timing of the payments. A prospective franchisee should clarify with Even Hotels the specific terms and conditions of this funding arrangement, including the repayment schedule, any associated interest or fees, and the criteria SCH uses to determine which franchisees are eligible for this funding.