Under what circumstances can First Data modify the Servicers Fees for an Even Hotels franchise?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
this Participation Agreement, including the FreedomPay Pass-Through Terms set forth on Attachment 1, which Hotel expressly agrees to and accepts. With respect to security, availability, and confidentiality, FreedomPay provides the statement se
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
Based on the 2025 FDD, the document outlines the relationship between First Data, the Bank, and the Client (the Even Hotels franchisee) regarding payment processing services. The agreement between these parties is independent of the agreement between First Data and IHG. The FDD states that IHG (Six Continents Hotels, Inc.) reserves the right to lower transaction fees upon notice to the hotel. However, IHG cannot increase this transaction fee.
According to the FDD, IHG may modify the support fee charged to the Even Hotels franchisee by no more than 10% annually upon notice to the hotel. This indicates that while First Data is involved in the payment processing services, IHG has the authority to adjust certain fees related to those services, specifically the transaction fee and the monthly support fee. The franchisee is responsible for all amounts set forth in the Fee Schedule, Terms and Conditions, or elsewhere in the Agreement.
Prospective Even Hotels franchisees should be aware that while First Data provides the payment processing services, IHG retains the right to modify certain fees associated with these services. It is important for franchisees to carefully review the Fee Schedule, Terms and Conditions, and any other relevant documents to understand the full scope of their financial obligations and the potential for fee adjustments during the term of their franchise agreement. Franchisees should also inquire about the historical frequency and magnitude of support fee adjustments to better anticipate potential cost increases.