factual
Under what circumstances is the Even Hotels casualty royalty fee charged?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| Royalty | |||
| Royalty | 5% of Gross Rooms Revenue (“GRR”). | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
| Casualty Royalty | 2% of GRR based on average GRR for preceding 12 months | Monthly, on the 15th of the following month (payable to Holiday) | Note 1 |
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, a casualty royalty fee is imposed on franchisees. This fee is set at 2% of Gross Rooms Revenue (GRR), calculated based on the average GRR for the preceding 12 months.
The casualty royalty fee is payable monthly to Holiday, on the 15th of the following month. This fee is in addition to the standard royalty fee, which is 5% of Gross Rooms Revenue.
Prospective Even Hotels franchisees should factor this ongoing expense into their financial projections. Understanding the conditions that trigger this fee and how it is calculated is crucial for managing the hotel's finances and ensuring compliance with the franchise agreement.
Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only.
It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.