factual

What is the purpose of the Technology Services Fee for Even Hotels franchisees?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

  • (5) Technology Services Fee. A monthly Technology Services Fee as set forth in Item 6 of Attachment "A" and any other fees as set out in the Master Technology Services Schedule in Attachment "D" hereto. The Technology Services Fee will be used by IHG to cover costs and investments that, in IHG's sole discretion, support the development and maintenance of IHG's technology systems. The Technology Services Fee may be increased in IHG's reasonable discretion, but in no case shall any such increase in any calendar year exceed 10% of the fee in effect at the beginning of that year. The Technology Services Fee does not include the cost, installation, maintenance or repair of any technology equipment at the Hotel.

Source: Item 23 — RECEIPTS (FDD pages 99–438)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, the Technology Services Fee is a monthly fee used by IHG to cover costs and investments that support the development and maintenance of IHG's technology systems. This fee does not cover the cost, installation, maintenance, or repair of any technology equipment at the hotel. The Technology Services Fee may be increased at IHG's discretion, but any increase in a calendar year cannot exceed 10% of the fee in effect at the beginning of that year.

This means that as an Even Hotels franchisee, you will be required to pay a monthly fee that contributes to the overall technology infrastructure of the IHG system. While this fee supports the development and maintenance of these systems, it is important to note that it does not cover the costs associated with the technology equipment within your specific hotel. You will be responsible for those expenses separately.

The FDD also mentions IHG Concerto, a proprietary, cloud-based solution that provides key features for managing and operating a hotel, including reservations, revenue, and content management, guest relations, and hotel operations insights. IHG provides network connectivity, system integration, and system interfaces between the hotel, IHG Concerto, and other services within the IHG ecosystem as part of the core services. Support services include remote and on-site maintenance for approved hardware and software specified in the Minimum Configuration and required for using the Core Services and Additional Required Services.

Prospective Even Hotels franchisees should be aware of the potential for increases in the Technology Services Fee, although these increases are capped at 10% per year. It is important to factor in these potential increases when budgeting for ongoing operational costs. Additionally, franchisees should clarify with IHG exactly what technology-related costs are covered by the Technology Services Fee and what costs will be the franchisee's responsibility to avoid unexpected expenses.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.