Who is responsible for all taxes resulting from the provision of the Next-Gen Payments Solution for an Even Hotels franchise?

According to Even Hotels's 2025 Franchise Disclosure Document, the hotel franchisee is responsible for all taxes resulting from the provision of the Next-Gen Payments Solution. This means that as an Even Hotels franchisee, you will be required to pay any income, gross receipts, franchise, sales, use, transfer, value-added, excise, customs, duties, property, or withholding taxes, including any associated interest, penalties, or other additions, that arise from the Next-Gen Payments Solution.

If IHG (InterContinental Hotels Group) is required to pay any of these taxes, penalties, or interest, they will invoice the Even Hotels franchisee for the amount. The franchisee is then obligated to pay this invoice within thirty days of its date. This arrangement ensures that the tax liabilities associated with the payment solution are ultimately borne by the hotel operator, which is a standard practice in franchising where the franchisee typically manages the day-to-day operations and related expenses.

This allocation of tax responsibility is a crucial financial consideration for prospective Even Hotels franchisees. It is important to factor in these potential tax liabilities when assessing the overall profitability and financial feasibility of the franchise. Franchisees should consult with a tax professional to understand the specific tax implications of the Next-Gen Payments Solution in their jurisdiction and to ensure compliance with all applicable tax laws.