Do the Services Contributions for Even Hotels include the costs of acquiring reservation services?
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 does not cover the costs franchisees incur to acquire reservation services. The Services Contribution is used by Holiday to develop, support, and 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. They may also include tactical marketing initiatives focused on short-term revenue enhancement and seasonal marketing programs.
Even Hotels franchisees are responsible for the costs associated with acquiring, installing, and maintaining their reservation services, equipment, and training. This means that while the Services Contribution supports the overall reservation system, franchisees must budget separately for their specific needs. This is a common arrangement in franchising, where franchisees often bear the costs of local marketing and technology while contributing to a system-wide fund.
Prospective Even Hotels franchisees should be aware that the costs for reservation services, property management systems, and telecommunications systems are separate from the Services Contribution. These systems often require specific hardware and software that must meet Even Hotels' specifications and may need to be purchased from designated third-party vendors. Franchisees should carefully review Item 5 and Item 7 of the FDD to understand the estimated costs for these systems and any related travel or on-site support expenses.