Under what conditions may Even Hotels' monthly NGP fee increase?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Your monthly NGP fee may increase according to the terms of the NGP agreement signed at install (no more than a 5% increase from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.
Source: Item 6 — OTHER FEES (FDD pages 30–52)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the monthly Next-Gen Payment (NGP) fee may increase based on specific conditions outlined in the NGP agreement. The agreement, which franchisees sign at the time of installation, allows for potential fee increases. These increases are tied to the costs incurred by SCH (presumably a third-party service provider) in delivering the NGP service.
However, the FDD stipulates that any increase to the NGP monthly fee will not exceed 5% of the franchisee's original quoted rate. The exact amount of the NGP fee is determined and provided on a quote that the franchisee receives before the NGP system is installed at their Even Hotels location.
This means that while the fee is subject to change, Even Hotels franchisees have some protection against drastic price hikes. It is important for prospective franchisees to carefully review the NGP agreement and the initial quote to fully understand the potential for fee increases and their limitations. Franchisees should also inquire about the specific factors that could trigger cost increases for SCH, and how those increases would be passed on to the franchisee.