For Even Hotels, what is the purpose of the Participation Agreement for the IHG Secure Payment Solution?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
By execution of this Participation Agreement, the parties hereto agree as follows:
Requirement for Participation Agreement.
Hotel acknowledges that IHG and FreedomPay have entered into the Secure Payment Solution Agreement (the "SPS Agreement"), effective as of July ___, 2021.
The SPS Agreement provides that an IHG-branded hotel or service company to such a hotel may, upon execution of a Participation Agreement, receive the benefit of the Secure Payment Solution services agreed by IHG and FreedomPay.
FreedomPay Services.
FreedomPay will provide services in accordance with the terms of this Participation Agreement, including the FreedomPay Pass-Through Terms set forth on Attachment 1, which Hotel expressly agrees to and accepts.
With respect to security, availability, and confidentiality, FreedomPay provides the statement set forth on Attachment 2.
Hotel will sign the PIM Acknowledgement set forth on Attachment 3.
Relationship of Hotel, IHG, and FreedomPay.
Hotel acknowledges that, although IHG will process the onboarding of Hotel, administer payments related to the services, and facilitate support for Hotel, FreedomPay is the provider of services.
Hotel will be accessing a single hosted environment configured for IHG, and Hotel does not have the right or ability to customize the hosted environment for its individual needs.
The payment of fees and requests for service, and other interaction with FreedomPay will be routed through IHG, acting as a facilitator.
Hotel will direct requests for service to IHG.
Fees.
Hotel will pay IHG a fee of $0.06 per transaction, where "transaction" means each of (i) an on-line authorization request, (ii) a captured request that does not have a corresponding on-line authorization (examples include verbal authorizations, below floor limit or offline requests), (iii) a return request, and (vi) a void request.
For most transactions, this fee will be collected by the merchant service provider as part of the settlement reconciliation.
IHG reserves the right to lower (but not to increase) this transaction fee upon notice to Hotel.
In addition, Hotel will pay IHG a support fee of $140 per month.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Participation Agreement for the IHG Secure Payment Solution allows an IHG-branded hotel to receive the benefit of secure payment solution services agreed upon by IHG and FreedomPay. By executing this agreement, the hotel agrees to be legally bound by its terms and conditions. FreedomPay is the provider of the payment gateway services, and the hotel agrees to pass-through terms required by FreedomPay.
The Participation Agreement outlines the relationship between the hotel, IHG, and FreedomPay. While IHG processes onboarding, administers payments, and facilitates support, FreedomPay is the actual service provider. The hotel accesses a hosted environment configured specifically for IHG and cannot customize it for individual needs. All payment of fees, service requests, and interactions with FreedomPay are routed through IHG, acting as a facilitator.
The agreement also specifies the fees associated with the Secure Payment Solution. The Even Hotels franchisee will pay IHG a fee of $0.06 per transaction, covering online authorization requests, captured requests without online authorization, return requests, and void requests. Additionally, there is a monthly support fee of $140 payable to IHG. IHG retains the right to lower the transaction fee but cannot increase it without notifying the hotel. The hotel must use IHG-approved equipment purchased specifically for the Secure Payment Solution, with pricing detailed in an equipment order form.
Several other Participation Agreements are required for Even Hotels franchisees, including agreements with internet service providers and wifi systems integrators for IHG Connect, service providers for Employee Safety Devices, approved service providers for Public Access Computers, and content service providers and systems integrators for In Room Entertainment and Media Solutions. These agreements ensure that franchisees adhere to IHG's standards and utilize approved services for various operational and guest-facing technologies.