What is the transaction fee that Even Hotels pays to IHG per transaction?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
ges that IHG and FreedomPay have entered into the Secure Payment Solution Agreement (the "SPS Agreement"), effective as of July ___, 2021. The SPS Agreement provides that an IHG-branded hotel or service company to such a hotel may, upon execution of a Participation Agreement, receive the benefit of the Secure Payment Solution services agreed by IHG and FreedomPay.
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- FreedomPay Services. FreedomPay will provide services in accordance with the terms of this Participation Agreement, including the FreedomPay Pass-Through Terms set forth on Attachment 1, which Hotel expressly agrees to and accepts. With respect t
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, franchisees are required to pay IHG a transaction fee of $0.06 per transaction. The FDD specifies that a 'transaction' includes online authorization requests, captured requests without corresponding online authorization, return requests, and void requests. This fee is typically collected by the merchant service provider as part of the settlement reconciliation process.
This transaction fee represents an ongoing cost for Even Hotels franchisees, impacting their daily operational expenses. While $0.06 per transaction may seem minimal, the cumulative effect can be significant depending on the volume of transactions processed by the hotel. It is important to note that IHG retains the right to lower this transaction fee but is prohibited from increasing it, providing a potential benefit to franchisees if IHG chooses to reduce the fee.
In addition to the transaction fee, Even Hotels franchisees must also pay IHG a monthly support fee of $140. IHG has the ability to modify this support fee by up to 10% annually, providing them with some flexibility to adjust the fee based on market conditions or the level of support provided. Franchisees should factor both the transaction fee and the monthly support fee into their financial projections to accurately assess the cost of operating an Even Hotels franchise.