What is the range of additional expenditures that Even Hotels franchisees may incur?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
A standard application fee for additional guest rooms or suites, as set forth in IHG's then current franchise disclosure document for Brand System hotels, will be charged upon application for any guest rooms or suites to be added to the Hotel. Licensee agrees and acknowledges that additional royalties may be charged on revenues from any activity if it is added at the Hotel by mutual agreement and it is not now offered at Brand System Hotels generally or it is designed or developed by or for IHG or its Affiliates.
Local and regional marketing programs and related activities may be conducted by Licensee, but only at Licensee's expense and subject to IHG's requirements and the Standards. Reasonable charges may be made for optional advertising materials ordered or supplied by IHG to Licensee for such programs and activities.
Additionally, Hotel will be responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
All Taxes resulting from the provision of the Next-Gen Payments Solution under this Agreement shall be the responsibility of Hotel.
If IHG requires Licensee to make payments by any of the foregoing methods, Licensee agrees to make its payment in compliance with those requirements and also to deposit and maintain at all times sufficient funds to cover all fees and payments that Licensee owes to IHG and its Affiliates in a segregated bank account that Licensee establishes and maintains for the Hotel.
If any amounts under this License are not paid when due, such non-payment shall constitute a breach of this License and, in addition, such unpaid amounts will accrue interest beginning on the first day of the month following the due date at 1½% per month or the maximum interest permitted by applicable law, whichever is less.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, franchisees may face several additional expenditures beyond the initial franchise fee and other standard costs. These can include fees for adding guest rooms or suites to the hotel, with the amount determined by IHG's then-current franchise disclosure document for Brand System hotels. Franchisees may also incur additional royalty fees if they add new activities at the hotel that are not generally offered at other Brand System hotels or are developed by IHG or its affiliates. These royalties would be charged on revenues from these activities.
Even Hotels franchisees are also responsible for local and regional marketing programs and activities, which are conducted at the franchisee's expense and are subject to IHG's requirements and standards. IHG may charge reasonable fees for optional advertising materials ordered or supplied to the franchisee for these programs. Additionally, franchisees are responsible for all taxes resulting from the provision of the Next-Gen Payments Solution, and they must cover collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
IHG may also require franchisees to pay outstanding fees via electronic funds transfer, direct account debit, ACH, or similar technologies. If this is the case, the franchisee must maintain sufficient funds in a segregated bank account to cover all fees and payments owed to IHG and its affiliates. Furthermore, interest may accrue on any unpaid amounts at a rate of 1½% per month, or the maximum interest permitted by applicable law, whichever is less. These additional expenditures highlight the importance of careful financial planning and adherence to IHG's standards and payment terms for prospective Even Hotels franchisees.