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Under what condition can an Even Hotels franchisee opt-out of participating in the TMC Revenue Program?

Even_Hotels Franchise · 2025 FDD

Answer from 2025 FDD Document

All Hotels are automatically enrolled in TMC; however, Hotels can opt-out if they do not want to participate in TMC prior to the start of the new program year.

Source: Item 6 — OTHER FEES (FDD pages 30–52)

What This Means (2025 FDD)

According to Even Hotels' 2025 Franchise Disclosure Document, participation in the Travel Management Company (TMC) Revenue Program is automatic for all hotels. However, an Even Hotels franchisee can opt-out of the TMC Revenue Program if they notify the franchisor, SCH, of their decision before the start of a new program year.

The TMC Revenue Program is designed to increase revenue and market share by rewarding travel agencies for driving non-negotiated rate and corporate contracted business to Even Hotels locations. Hotels participating in the program pay a 2.25% override fee on qualifying consumed room nights above a base amount, with a maximum annual fee of $25,000. This fee is in addition to the standard travel agency commission and is paid through the IHG Commission Services (ICS).

By opting out of the TMC Revenue Program, an Even Hotels franchisee would avoid paying the 2.25% override fee. However, they would also forgo the potential benefits of increased revenue and market share that the program is designed to generate through incentivizing travel agencies. A prospective franchisee should carefully weigh the costs and benefits before deciding to opt out, considering their hotel's specific market conditions and business strategy.

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.