Under what condition is the delivery of PCI-Validated Point-to-Point Encryption Secure Switching subject to for Even Hotels?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Delivery of PCI-Validated Point-to-Point Encryption Secure Switching is subject to Hotel's compliance with the FreedomPay P2PE Instruction Manual (the "PIM") and Hotel's acknowledgement of such compliance in the form set forth on Exhibit 1 to Attachment 1 (PIM Acknowledgement) to this Attachment.
In the event Hotel does not comply with any obligation under the PIM, IHG may, but shall not be obligated, to perform any such obligation or otherwise mitigate such non-compliance, in which event IHG may charge Hotel reasonable fees to compensate IHG for such mitigation, including, without limitation, charging the then current list price for the applicable IHG services.
Further, a failure to comply with the PIM or the requirements of Section 3 below will result in the disallowance of the benefits to Hotel described in the PIM.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the delivery of PCI-Validated Point-to-Point Encryption Secure Switching is contingent upon the franchisee's compliance with the FreedomPay P2PE Instruction Manual (PIM). Furthermore, the franchisee must acknowledge this compliance by completing Exhibit 1 to Attachment 1, which is the PIM Acknowledgement form. FreedomPay is the provider of the payment gateway services for Even Hotels.
This means that to utilize the secure switching service, an Even Hotels franchisee must follow all guidelines and instructions outlined in the PIM. This manual likely contains specific procedures and protocols for handling payment data securely to minimize the risk of data breaches and maintain Payment Card Industry (PCI) compliance. The acknowledgement form serves as a formal confirmation that the franchisee understands and agrees to adhere to these security measures.
Failure to comply with the PIM can have significant consequences for an Even Hotels franchisee. IHG (InterContinental Hotels Group), the parent company, has the option to step in and rectify the non-compliance, but the franchisee will be responsible for covering the associated costs, potentially including IHG's standard service fees. Moreover, non-compliance can lead to the loss of benefits outlined in the PIM, which could include reduced PCI scope or other advantages related to secure payment processing.
It is crucial for prospective Even Hotels franchisees to carefully review the PIM and understand their obligations regarding data security. They should also ensure they can meet the requirements for PCI-Validated Point-to-Point Encryption Secure Switching to avoid potential penalties and maintain the security of their payment processing systems. Franchisees should clarify with IHG and FreedomPay any uncertainties regarding the PIM and its implementation to ensure full compliance.