What is the significance of SCH being the parent of Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday's direct corporate parent is Six Continents Hotels, Inc. ("SCH") (formerly known as Bass Hotels & Resorts, Inc. and Holiday Hospitality Corporation). SCH's principal business address is Three Ravinia Drive, Suite 100, Atlanta, Georgia 30346.
Certain trademarks associated with the various hotel brands disclosed in this disclosure document are owned by SCH's affiliate, Six Continents Limited ("SCL"). Pursuant to various license agreements, SCL has granted SCH the exclusive license in the United States and Canada to use and sublicense use of all such trademarks (the "SCL License Agreements"). SCL's principal business address is in the United Kingdom at 1 Windsor Dials, Arthur Road, Windsor, Berkshire, SL4 1RS UK.
SCH has granted - - pursuant to a master license agreement (originally entered into between each party's respective predecessor) which was amended and restated most recently on January 1, 2024 (the "Master License") - - Holiday the right to franchise and operate the Holiday Inn®, Holiday Inn Express®, Holiday Inn® Resort, Crowne Plaza® Hotels & Resorts, Staybridge Suites®, Candlewood Suites®, Hotel Indigo®, EVEN® Hotels, voco® Hotels, Vignette Collection™, avid® hotels, InterContinental® Hotels & Resorts, Atwell Suites™, and Garner™ hotels systems in the United States and Canada. Under the terms of the Master License, certain fees paid by licensees, other than the royalties and related fees, are payable to SCH, and either SCH or Holiday may collect those amounts from licensees. Also under the Master License, SCH is required to provide Holiday and its licensees with central marketing, reservation and training services.
Source: Item 21 — FINANCIAL STATEMENTS (FDD page 98)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, Six Continents Hotels, Inc. ("SCH") is the direct corporate parent of Holiday, which franchises Even Hotels. This is significant because SCH grants Holiday the right to franchise and operate Even Hotels in the United States and Canada through a master license agreement, last updated on January 1, 2024. This agreement dictates that certain fees paid by franchisees, excluding royalties, are payable to SCH, and either SCH or Holiday can collect these fees.
Furthermore, SCH is obligated to provide central marketing, reservation, and training services to Holiday and its franchisees under the Master License. SCH also administers the NextGen Payments program, which is a data security process designed to protect credit card information. Franchisees are required to use this program or any successor payment program implemented by SCH.
Additionally, SCH has entered into agreements with companies like Hewlett-Packard Inc. to provide PMS hardware, software, and deployment services to Even Hotels. SCH is also endorsed by the IHG Owners Association and provides some sponsorship to the association. This indicates that SCH plays a crucial role in the operational and technological infrastructure supporting the Even Hotels franchise system.