What is the processing fee that Holiday retains if an Even Hotels application is not approved or is withdrawn?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
name changes, re-alignment of the licensee's ownership and re-licensing.
If Holiday does not approve your application for a License, or if you withdraw the application before Holiday approves or denies it, Holiday will return the Application Fee to you, less its processing fee of $15,000 to cover costs for evaluating your application. If Holiday approves the application subject to certain requirements, Holiday may revoke its approval if you fail to meet those requirements. Once Holiday approves the application (even if Holiday
Source: Item 5 — INITIAL FEES (FDD pages 27–30)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, when submitting an application for an Even Hotels license, the applicant must pay Holiday an initial application fee. This fee is $500 per guest room, but not less than $75,000.
If Holiday does not approve the application, or if the applicant withdraws it before approval or denial, Holiday will return the application fee, but will retain a processing fee of $15,000. This processing fee is intended to cover the costs associated with evaluating the application.
However, once Holiday approves the application, the application fee becomes nonrefundable, even if Holiday subsequently revokes its approval due to the applicant's failure to meet certain requirements. This means that prospective Even Hotels franchisees should be aware that the $15,000 processing fee is at risk if the application is withdrawn or denied, and the entire application fee is at risk once the application is approved.