Can the Services Contribution for Even Hotels be used for hotel maintenance?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels that SCH owns and manages and all Brand System licensees must pay the Services Contributions specified in paragraph 3.B of the License and summarized in Item 6 of this disclosure document. Holiday will use these funds as it determines to develop, support and/or administer marketing, reservation and training programs. The Services Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of your Hotel. Holiday and its affiliates are not responsible for any of these costs. Funds from Services Contributions will typically be invested in activities that strengthen the brand such as awareness advertising, research, and the development of new or improved services, but may include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs. The Services Contributions do not include costs which you incur in the acquisition, installation or maintenance of reservations services, equipment or training, or in your own marketing activities. Holiday can change the Services Contribution from time to time. Holiday may, on 30 days advance written notice, at any time during the term of your License, and from time to time, increase the Services Contribution by up to 1% of Gross Rooms Revenue. If Holiday increases the Services Contribution in this way, then Holiday cannot make another discretionary increase again for 24 months after the start of a prior increase. Holiday may increase the Services Contribution by a maximum of 2% of Gross Rooms Revenue over the term of your License.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 70–82)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Services Contribution cannot be used to cover the costs of hotel maintenance. The funds are specifically designated for marketing, reservation, and training programs.
Holiday will use the funds to develop, support and/or administer marketing, reservation and training programs. These funds are invested in activities that strengthen the brand, such as awareness advertising, research, and the development of new or improved services. Tactical marketing initiatives focused on short-term revenue enhancement and seasonal marketing programs may also be funded through the Services Contribution.
The Services Contributions do not cover the costs franchisees incur in the acquisition, installation, or maintenance of reservation services, equipment, training, or their own marketing activities. Holiday and its affiliates are not responsible for the costs of maintenance, repair, modernization, renovation, or upgrading of your Hotel.