Under what condition might additional royalties be charged on revenues from any activity at an Even Hotels location?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Royalty Fee. A monthly Royalty Fee in the amount set forth in Item 4 of Attachment "A". Licensee agrees and acknowledges that additional royalties may be charged on revenues from any activity if it is added at the Hotel by mutual agreement and it is not now offered at Brand System Hotels generally or it is designed or developed by or for IHG or its Affiliates. The Royalty Fee is solely in consideration of our granting Licensee the franchise conferred by this License and is not in exchange for any goods, services or assistance which may be furnished by IHG.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels's 2025 Franchise Disclosure Document, additional royalties may be charged on revenues from any activity added at the hotel under specific conditions. These conditions are that the activity is added by mutual agreement and it is either not generally offered at Brand System Hotels or it is designed or developed by or for IHG (InterContinental Hotels Group) or its affiliates.
This means that if an Even Hotels franchisee and IHG mutually agree to introduce a new revenue-generating activity at the hotel, and that activity is unique to that location or was created by IHG, then additional royalty fees may apply. The standard royalty fee covers the franchise rights, but these additional royalties would compensate IHG for the unique benefit the franchisee receives from the new activity.
For a prospective Even Hotels franchisee, this highlights the importance of understanding the scope of the standard royalty fees and carefully evaluating any new activities proposed for the hotel. It would be prudent to discuss potential additional royalties with IHG before implementing any new revenue streams to fully understand the financial implications. This clause ensures that IHG is compensated for innovations and unique offerings that benefit individual franchisees beyond the standard franchise agreement.