Can the Even Hotels Services Contribution be used for hotel maintenance, repair, modernization, renovation, or upgrades?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (4) IHG System Fund Contribution. "IHG System Fund Contribution" means the assessments paid by Licensee, comprised of the Services Contribution and the Loyalty Program Contribution, for the IHG System Fund Activities (as defined in paragraph 4.G) to be provided by IHG and its Affiliates.
- a. Services Contribution. A monthly Services Contribution in the amount set forth in Item 5 of Attachment "A". The Services Contribution will typically be invested by IHG in activities that, in IHG's sole business judgment as to the long-term interests of the Brand System, strengthen the brand such as awareness advertising, marketing, sales, guest services, reservations, standards, training programs, research, and the development of new or improved services, associated products and platforms, but may also include tactical marketing initiatives more focused on short term revenue enhancement and seasonal marketing programs. The Service Contribution cannot be used to cover the cost of maintenance, repair, modernization, renovation, or upgrading of the Hotel. The Services Contribution does not include costs that Licensee incurs in the acquisition, installation or maintenance of reservations services, equipment or training, or in Licensee's own marketing activities. IHG and its Affiliates are not responsible for any of these costs.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Services Contribution cannot be used for hotel maintenance, repair, modernization, renovation, or upgrades. The Services Contribution is a monthly fee, detailed in Item 5 of Attachment A, that Even Hotels franchisees must pay.
The FDD specifies that Even Hotels will typically invest the Services Contribution in activities that strengthen the brand. These activities include awareness advertising, marketing, sales, guest services, reservations, standards, training programs, research, and the development of new or improved services, associated products, and platforms. Even Hotels may also use the Services Contribution for tactical marketing initiatives focused on short-term revenue enhancement and seasonal marketing programs.
The franchisee is responsible for funding all ordinary and extraordinary maintenance and repair, capital improvements, and renovations of the hotel. Even Hotels may require franchisees to establish a capital reserve, up to 5% of gross revenue annually, to be used for capital expenditures and upgrading the hotel, including renovations and FF&E replacement. Franchisees must also complete significant renovations to maintain the hotel as a first-class facility, including replacing soft goods at least every seven years and case goods at least every fourteen years.