What is the relationship between SCH and Even Hotels according to the FDD?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
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Holiday's direct corporate parent is Six Continents Hotels, Inc. ("SCH") (formerly known as Bass Hotels & Resorts, Inc. and Holiday Hospitality Corporation). SCH's principal business address is Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346.
Certain trademarks associated with the various hotel brands disclosed in this disclosure document are owned by SCH's affiliate, Six Continents Limited ("SCL"). Pursuant to various license agreements, SCL has granted SCH the exclusive license in the United States and Canada to use and sublicense use of all such trademarks (the "SCL License Agreements"). SCL's principal business address is in the United Kingdom at 1 Windsor Dials, Arthur Road, Windsor, Berkshire, SL4 1RS UK.
SCH has granted - - pursuant to a master license agreement (originally entered into between each party's respective predecessor) which was amended and restated most recently on January 1, 2024 (the "Master License") - - Holiday the right to franchise and operate the Holiday Inn®, Holiday Inn Express®, Holiday Inn® Resort, Crowne Plaza® Hotels & Resorts, Staybridge Suites®, Candlewood Suites®, Hotel Indigo®, EVEN® Hotels, voco® Hotels, Vignette Collection™, avid® hotels, InterContinental® Hotels & Resorts, Atwell Suites™, and Garner™ hotels systems in the United States and Canada. Under the terms of the Master License, certain fees paid by licensees, other than the royalties and related fees, are payable to SCH, and either SCH or Holiday may collect those amounts from licensees. Also under the Master License, SCH is required to provide Holiday and its licensees with central marketing, reservation and training services.
SCH has also offered licenses outside of North America for the Crowne Plaza, Holiday Inn Express and Holiday Inn hotel brand groups since April 1997 (and its predecessors engaged in such activities before that time, commencing originally in May 1988). In November 2010, (as amended April 2024), SCH assigned some of its international licenses to certain affiliates of Holiday, as follows: InterContinental Hotels Group (Asia Pacific) Pte Ltd, a Singapore company ("IHGAP"), with a registered business address of 230 Victoria Street #13-00 Bugis Junction Towers, Singapore 188024, Singapore and IHG Japan Management LLC, a Japanese company, with a registered business address of 20th Floor, Toranomon Kotohira Tower, 2-8, Toranomon 1-chome, Minato-ku, Tokyo, Japan. These companies now offer licenses on a regional basis, outside of the Americas. Through the November 2010 (as amended April 2024) assignment, there was a grant of licenses from SCH to IHGAP for the Holiday Inn, Holiday Inn Express brand group, Holiday Inn Resort, Crowne Plaza, Staybridge Suites and Hotel Indigo marks in Australia, Bangladesh, Bhutan, Brunei, Cambodia, French Polynesia, Fiji, Hong Kong, India, Indonesia, Japan, Korea, Laos, Macao, Malaysia, Maldives, Mongolia, Myanmar, Nepal, New Zealand, Pakistan, Papua New Guinea, Philippines, Seychelles, Singapore, Sri Lanka, Taiwan, Thailand, Vanuatu and Vietnam (the "IHGAP Territories"). In June 2023, there was a grant of license by SCL to IHGAP for the voco and Vignette Collection marks in the IHGAP Territories. Through the license agreement between InterContiental Hotels Corporation and IHGAP there was a grant of a license for the InterContinental Hotels and Resorts marks in the IHGAP Territories.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 98)
What This Means (2025 FDD)
According to the 2025 Even Hotels Franchise Disclosure Document, Six Continents Hotels, Inc. ("SCH") plays a significant role in the Even Hotels franchise system. SCH is the direct corporate parent of Holiday, the entity that grants the franchise to operate Even Hotels. SCH owns certain trademarks associated with the various hotel brands and has granted Holiday the exclusive license in the United States and Canada to use and sublicense these trademarks, including those for Even Hotels. This arrangement is formalized through a Master License agreement between SCH and Holiday.
Under the Master License agreement, Holiday has the right to franchise and operate the Even Hotels system in the United States and Canada. Certain fees paid by Even Hotels franchisees, other than royalties and related fees, are payable to SCH, and either SCH or Holiday may collect these amounts. SCH is also required to provide Holiday and its franchisees with central marketing, reservation, and training services. Additionally, SCH endorses and provides some sponsorship to the IHG Owners Association, in which Even Hotels franchisees are eligible for membership.
Furthermore, Even Hotels franchisees are required to use NextGen Payments ("NGP"), a computerized payment card processing program administered by SCH. Franchisees must enter into agreements with Fiserv, the SCH-approved merchant service provider, and participation agreements with FreedomPay and SCH. SCH's Global Sales & Marketing department also establishes marketing relationships that may generate revenue for SCH, and SCH can change the Loyalty Program Contribution percentages in its sole judgment. Overall, SCH maintains a central role in the Even Hotels franchise system through licensing, service provision, and operational requirements.