Who is responsible for all Taxes resulting from the provision of the Next-Gen Payments Solution for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- 3.5 Taxes.
All Taxes resulting from the provision of the Next-Gen Payments Solution under this Agreement shall be the responsibility of Hotel.
If IHG is required to pay any such Taxes or penalties or interest relating thereto, IHG will provide an invoice for such amounts and Hotel will pay such amounts within thirty (30) days of the date of the invoice.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the hotel is responsible for all taxes resulting from the provision of the Next-Gen Payments Solution. This means that as a franchisee, you will be required to pay any income, gross receipts, franchise, sales, use, transfer, value-added, excise, customs, duties, property, or withholding taxes associated with the payment solution.
If IHG (InterContinental Hotels Group) is required to pay any of these taxes, penalties, or interest related to them, they will invoice the hotel for those amounts. The franchisee must then pay the invoiced amount within thirty days of the invoice date. This arrangement ensures that Even Hotels franchisees bear the direct tax burden associated with the Next-Gen Payments Solution, while IHG retains the right to collect these taxes if initially paid by them.
This is a fairly standard practice in franchising, where franchisees typically bear the responsibility for taxes and fees associated with specific services or technologies provided by the franchisor. Prospective Even Hotels franchisees should factor these potential tax liabilities into their financial projections and operating budgets. Understanding the specific types and amounts of taxes that may apply is crucial for accurate financial planning.