What is Even Hotels required to do regarding the maintenance of the Secure Payment Solution equipment?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall (a) ensure that the equipment is kept in good and proper working condition, normal wear and tear excepted, (b) not make any alterations or improvements to the equipment without the prior written approval of the manufacturer, and (c) operate and maintain the goods in accordance with the user manuals and documentation, and any instructions issued by the manufacturer from time to time.
Equipment is manufactured by a third party and is subject to a warranty provided by that third party, and without limiting any other representations, warranties or covenants of IHG, IHG hereby assigns such warranty to Hotel or, if such warranty cannot be so assigned, IHG shall pass through the benefit of such warranties to Hotel, and otherwise cooperate with Hotel in this respect.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the franchisee, not Even Hotels, is primarily responsible for maintaining the Secure Payment Solution (SPS) equipment. The franchisee must ensure the equipment is in good working condition, accounting for normal wear and tear. Alterations or improvements are not allowed without the manufacturer's prior written approval. The franchisee is also responsible for operating and maintaining the equipment according to the user manuals and any instructions from the manufacturer.
Even Hotels makes the equipment available to the franchisee under the terms of the franchise agreement, but the financial burden of keeping the equipment operational falls on the franchisee. This includes the costs associated with daily maintenance and operation. The franchisee is also responsible for procuring and maintaining all hardware, software, data communication, and connectivity required to connect to the FreedomPay system and services.
While Even Hotels assigns the equipment warranty to the franchisee or passes through the benefits of the warranties, the franchisee is still responsible for the upkeep of the equipment. However, the franchisee's recourse against Even Hotels for service provided by Even Hotels or its agents is limited to correcting defective workmanship at no additional charge, provided Even Hotels receives prompt notification. This arrangement is typical in franchising, where franchisees handle day-to-day maintenance while franchisors provide support and warranty assistance.