What is Even Hotels responsible for procuring and maintaining at its own cost to connect to the FreedomPay system?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 1.2.
PIM Compliance: Hotel shall be responsible for procuring and maintaining, at its sole cost, all hardware, software and data communication and connectivity required to connect to the FreedomPay system and services (the "FreedomPay Solution").
Delivery of PCI-Validated Point-to-Point Encryption Secure Switching is subject to Hotel's compliance with the FreedomPay P2PE Instruction Manual (the "PIM") and Hotel's acknowledgement of such compliance in the form set forth on Exhibit 1 to Attachment 1 (PIM Acknowledgement) to this Attachment.
In the event Hotel does not comply with any obligation under the PIM, IHG may, but shall not be obligated, to perform any such obligation or otherwise mitigate such non-compliance, in which event IHG may charge Hotel reasonable fees to compensate IHG for such mitigation, including, without limitation, charging the then current list price for the applicable IHG services.
Further, a failure to comply with the PIM or the requirements of Section 3 below will result in the disallowance of the benefits to Hotel described in the PIM.
- 1.3.
Third Party Services.
- 1.4. Hotel shall be responsible for procuring from its acquiring bank any necessary PIN keys and KSNs needed to allow pin-debit payment card transactions.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, the franchisee is responsible for specific costs and obligations related to the FreedomPay system. Even Hotels is required to procure and maintain, at its own expense, all the necessary hardware, software, data communication, and connectivity to connect to the FreedomPay system and services, referred to as the FreedomPay Solution.
This means that the franchisee will bear the financial burden of acquiring and upkeeping all technological components required for the FreedomPay system to function correctly. This includes not only the initial purchase of hardware and software but also ongoing maintenance, updates, and any connectivity costs associated with transmitting data.
Furthermore, Even Hotels is responsible for obtaining any necessary PIN keys and KSNs (Key Serial Numbers) from their acquiring bank to enable pin-debit payment card transactions. Failing to comply with the PIM (Point-to-Point Encryption Secure Switching) could lead to IHG (InterContinental Hotels Group) performing the obligations and charging the franchisee reasonable fees for the mitigation, potentially at IHG's current list price for applicable services. Additionally, non-compliance with the PIM or other requirements may result in the loss of benefits described in the PIM.