Under the Next-Gen Payments Agreement, what is the duration of the initial term for Even Hotels, and how does it extend?
Even_Hotels Franchise · 2025 FDDAnswer from 2025 FDD Document
Term and Extension. This Agreement is effective upon signing, and the term of 48 months will begin upon billing commencement for the Next-Gen Payments Solution at the Hotel ("Term"). At the end of the then-current Term, the Term will automatically extend for an additional 48 months, unless one Party gives written notice to the other Party at least 90 days prior to the end of the Term. IHG will provide one hardware refresh for each extension of the Term.
Source: Item 23 — RECEIPTS (FDD pages 99–438)
What This Means (2025 FDD)
According to Even Hotels' 2025 Franchise Disclosure Document, the Next-Gen Payments (NGP) Agreement has an initial term of 48 months, which begins once billing commences for the NGP solution at the hotel. This means the term doesn't start upon signing the agreement but rather when the hotel begins to be billed for the service.
Following the initial 48-month term, the agreement automatically extends for another 48 months unless either party provides written notice of termination to the other at least 90 days before the end of the current term. This automatic renewal clause is a standard practice in many franchise agreements to ensure continuity of service and operations.
IHG will provide a hardware refresh for each extension of the term. This suggests that Even Hotels franchisees will receive updated equipment to maintain the payment system's functionality and security as the agreement extends, which is a notable benefit. Franchisees should be aware of the 90-day notice requirement to avoid unwanted extensions and associated costs.