Under what conditions is Even Hotels liable for an early termination fee for the NGP program?

According to Even Hotels' 2025 Franchise Disclosure Document, a licensee will be liable for an early termination fee if they terminate the Next-Gen Payment Agreement (NGP) for any reason. This fee is calculated as 50% of the NGP monthly fee, multiplied by the number of remaining monthly payments in the term. The NGP program requires hotels to use the Next-Gen Payment Agreement with SCH, and all hotels are mandated to use NGP or any successor payment program implemented by SCH.

This means that if an Even Hotels franchisee decides to terminate the NGP agreement early, regardless of the reason, they will incur a termination fee. The fee is based on a percentage of the monthly fee and the remaining term of the agreement, which could potentially be a significant cost depending on the length of the remaining term.

Prospective franchisees should carefully consider the implications of this early termination fee and factor it into their financial planning. It would be prudent to fully understand the terms of the Next-Gen Payment Agreement, including the monthly fee and the length of the term, before entering into the franchise agreement. Franchisees should also inquire about any potential circumstances that might lead to early termination and how the fee would be applied in those situations. Understanding these details can help franchisees avoid unexpected costs and make informed decisions about their investment.