What is the purpose of the Services Contribution fee for Even Hotels franchisees?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
the average monthly GRR for the period that the Hotel has been operating in the Brand System.
Note 2: Services Contribution: You, all other Brand System licensees and all Hotels that Holiday's affiliates own or manage must pay a Services Contribution as specified in this Item, in Item 11, and paragraph 3.B of the License. Holiday will use these funds as it determines to develop, support and/or administer marketing, reservations and training programs. The Services Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of your Hotel. Holiday and its affiliates are not responsible for any of these costs. Besides being used in developing, supporting and/or administering marketing, reservations and training programs, funds from Services Contributions will typically be invested in activities that strengthen the brand such as awareness advertising, research, and the development of new or improved services, but may also include tactical marketing initiatives
more focused on short term revenue enhancement and seasonal marketing programs. The Services Contributions do not include costs which you incur in the acquisition, installation or maintenance of reservations services, equipment or training, or costs associated with seasonal enhancements such as seasonal scents, sounds, tastes or in your own marketing activities. Holiday can change the Services Contribution from time to time. Holiday may, on 30 days advance written notice, at any time during the term of your License, and from time to time, increase the Services Contribution by up to 1% of GRR. If Holiday increases the Services Contribution in this way, then Holiday cannot make another discretionary increase again for 24 months after the start of a prior increase. Holiday may increase the Services Contribution by a maximum of 2% of GRR over the term of your License.
Note 3: Loyalty Programs: Your Hotel must participate in the loyalty program (the "Loyalty Program") for as long as SCH chooses to market a Loyalty Program. As of the date of this disclosure document, the Loyalty Program is marketed to consumers under the names "IHG One Rewards", "InterContinental Ambassador", and "IHG® Business Rewards". You must pay the Initial Marketing Contribution and Loyalty Program Contribution to SCH for the Loyalty Program. The Initial Marketing Contribution is payable when your Hotel first enters the Brand System.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Services Contribution fee is used by Holiday to develop, support, and administer marketing, reservations, and training programs for the Even Hotels brand. This fee is paid by all Even Hotels licensees, as well as hotels owned or managed by Holiday's affiliates. The FDD specifies that the Services Contribution cannot be used to cover the costs of maintenance, repair, modernization, renovation, or upgrading of a franchisee's hotel. Holiday and its affiliates are not responsible for these costs.
Funds from the Services Contributions are typically invested in activities that strengthen the Even Hotels brand, such as awareness advertising, research, and the development of new or improved services. However, the funds may also be used for tactical marketing initiatives more focused on short-term revenue enhancement and seasonal marketing programs. The Services Contribution does not cover the costs franchisees incur in acquiring, installing, or maintaining reservations services, equipment, or training, nor does it cover costs associated with seasonal enhancements or the franchisee's own marketing activities.
The Services Contribution is a percentage of Gross Rooms Revenue (GRR). The FDD indicates that the Services Contribution is 3.5% of GRR and is a combined fee for marketing, reservations, and training. This fee is paid monthly, on the 15th of the following month, which is the same schedule as the royalty payments. Holiday has the right to change the Services Contribution from time to time, with certain restrictions. Holiday may increase the Services Contribution by up to 1% of GRR with 30 days' advance written notice, but cannot make another discretionary increase for 24 months after the start of a prior increase. The maximum increase Holiday can implement over the term of the license is 2% of GRR.