Does SCH commit to perform post-sale obligations for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Exhibit F-1 to this disclosure document includes Holiday's audited financial statements for the fiscal years ended December 31, 2024, December 31, 2023, and December 31, 2022.
Our parent, SCH, commits to perform certain post-sale obligations for us. Exhibit F-2 includes SCH's audited financial statements for the fiscal years ended December 31, 2024, December 31, 2023, and December 31, 2022.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 98)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, SCH (InterContinental Hotels Group's parent company) commits to perform certain post-sale obligations for Holiday, the franchisor of Even Hotels. This commitment is documented in Item 21, which references Exhibit F-2 containing SCH's audited financial statements for the fiscal years ended December 31, 2024, December 31, 2023, and December 31, 2022. These financial statements provide insight into SCH's financial health and its ability to meet its obligations.
Specifically, after the hotel opens, Holiday will seek to maintain high standards of quality, cleanliness, appearance, and service at all hotels using the Brand System. This is to promote, protect, and enhance the public image and reputation of the EVEN Hotels brand name, and to increase the demand for services offered by the Brand System. Holiday's judgment in these matters will be controlling in all respects, and it will have wide latitude in making these judgments. Holiday will also provide required and optional training programs and access to reservation services, if the franchisee is in compliance with their material obligations under the License.
Furthermore, SCH uses the "Services Contribution" (see Item 6) for marketing, reservations, and other related activities which, in Holiday's business judgment as to the long-term interests of the Brand System, support marketing, reservations, and other related functions. However, the FDD clarifies that neither Holiday nor its affiliates are obligated to spend a fixed amount or proportionate amount of the Services Contributions that a franchisee pays, nor are they obligated to ensure that the franchisee benefits directly or proportionately from these contributions. This means that while SCH commits to certain post-sale obligations, the direct benefits to individual franchisees may vary.
In addition, Even Hotels franchisees are required to grant SCH access to the hotel's property management system and HolidexPlus through SCH's Corporate Monitor program. This access allows SCH to review and make changes to the hotel's inventory, which SCH will use for activities designated by the hotel through the Hotel Content Manager Internet site and as otherwise needed to provide IHG Voice services to the hotel. The franchisee must sign any required documentation to grant SCH this access.