When is the Even Hotels Property Improvement Plan (PIP) fee due?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty | |||
| Royalty | 5% of Gross Rooms Revenue (“GRR”). | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
| Casualty Royalty | 2% of GRR based on average GRR for preceding 12 months | Monthly, on the 15th of the following month (payable to Holiday) | Note 1 |
| Sales and Marketing | |||
| Services Contribution | 3.5% of GRR (combined marketing, reservations & training fee). | Same as Royalty | Note 2 |
| Initial Marketing Contribution to Loyalty Program | $10.00 per approved guest room. | At same time as 1st Royalty Payment (one- time charge) (Payable to SCH) | Note 3 |
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members. 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members. | Same date as Royalty (Payable to SCH) | Note 3 |
| Local Marketing Programs | Varies depending on actual cost | Varies (Payable to Holiday or 3rd party engaged by Licensee) | Note 4 |
| Promotions Required & Optional Advertising Materials | On request (payable to Holiday) | Note 4 | |
| Third Party Distribution Connection Fees | |||
| Travel Agent Commissions (IHG Commission Services) | 10% (minimum) commission on GRR (or other commission that Holiday designates). | Monthly (Payable to SCH) | Note 5 |
| IHG Ignite Digital Marketing Fees | 2.25% commission on all consumed direct digital revenue booked. | Monthly (Payable to SCH or intermediary) | Note 5 |
| TMC (formerly known as BTA) Revenue Program | Hotels pay an override fee of 2.25% on qualifying consumed room nights only, with a maximum annual payment of $20,000 USD (or equivalent local currency). | Monthly (Payable to SCH) | Note 5 |
| GDS Fees | $6.40 per reservation | Monthly (Payable to service provider) | Note 5 |
| IHG Business Edge Program Booking Fees | 4% of consumed transient revenue booked through the IHG Business Edge Program. IHG One Rewards Measured Standards are | Monthly (Payable to SCH) | Note 5 |
| measured and enforced by the Loyalty Program to ensure consistency in the delivery of the program | |||
| to its members. Standards are based on calendar quarter thresholds. Hotels are measured at the end | |||
| of each calendar quarter for compliance. If a Hotel fails to meet the threshold for a quarter, it will have | |||
| one quarter to cure. If a Hotel that has 300 rooms or less fails to cure, it will move to assessment and | |||
| will be assessed a fee of $1,000 for each standard failed. If a Hotel fails in consecutive quarters, the | |||
| assessment will escalate to $2,000 for a failed third quarter and $3,000 for a failed fourth quarter. The | |||
| assessment is capped at $3,000 per quarter per standard. If a Hotel that has more than 300 rooms | |||
| fails to cure, it will move to assessment and will be assessed a fee of $1,000 for each standard failed. | |||
| If a Hotel fails in consecutive quarters, the assessment will escalate to $2,500 for a failed third quarter | |||
| Type of Expenditure | Amount | Method of Payment and When Due | |
| Application Fee (Note 1) | $75,000 | With application | Holiday |
| Property Improvement Plan | $0 to $10,000 | Before you submit | Holiday |
| (“PIP”) fee (Note 1) | your application | ||
| Land (typ |
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Property Improvement Plan (PIP) fee, which ranges from $0 to $10,000, is due before you submit your application to Holiday.
This fee is separate from potential re-inspection fees. If the PIP is not completed to Even Hotels' satisfaction by the completion date, the franchisee may be assessed a fee of up to $5,000 for the first re-inspection and any subsequent re-inspections until the work is completed satisfactorily. The franchisee must also provide complimentary lodging at the hotel for the inspector during these re-inspections. Additionally, a fee of up to $5,000 may be assessed if any PIP milestones need to be extended, and complimentary lodging must be provided for any PIP-related inspections.
It is important for prospective Even Hotels franchisees to factor in these potential PIP-related costs, including both the initial fee and the possible expenses associated with re-inspections, extensions, and inspector lodging, when evaluating the overall investment required for the franchise.