Bottom line
- Total investment $16.9M – $25.2M including a $75K franchise fee, 5.0% ongoing royalty.
- No Item 19 financial performance data disclosed — the franchisor chose not to publish revenue figures.
- Rated CAUTION with a risk score of 72/100.
- 59 litigation matters disclosed in Item 3 — higher than typical. Review the summary for patterns (franchisor-initiated vs. franchisee-initiated).
Item 1 · who you're contracting with
The Franchisor
Yale framework · single-unit ROIC
Returns Analysis
Pulls Item 7 (investment) and Item 19 (revenue) from this brand's FDD into the Yale unlevered-ROIC formula. Override any input to stress-test it against your own assumptions.
The model · Yale framework
What would one EVEN Hotels unit return on the cash you put in?
Unlevered ROIC · per unit
1%
Below typical band (30–60%)
Overview
About
Franchisees operate mid-scale wellness-focused hotel properties (part of IHG's extended-stay portfolio) handling daily operations including guest services, housekeeping, maintenance, front desk, and revenue management. Franchisees are responsible for property-level P&L while adhering to corporate brand standards, systems, and paying 5% royalties on gross room revenue.
Item 7 · what it costs
The Vitals
Item 19
Financial Performance
This franchisor did not disclose financial performance representations in Item 19, or our extractor could not parse them.
Item 20 · unit dynamics
The Growth Chart
Year-over-year franchised unit counts and net change. Source: FDD Item 20.
Item 20 · 13 states with active franchisees
The Territory Map
Derived from franchisee contact records. Shows states with at least one current operator — not where the franchisor is registered to sell new units (that data is re-extracting in a future refresh).
States derived from franchisee phone area codes (Item 20). Approximate — ported numbers may show the original state, not the franchisee's current location.
Government records
SBA Loan Data
Aggregated from SBA 7(a) loan disclosures, public data unique to FranchiseVerdict.
No SBA loan data available for this brand.
FranchiseVerdict rating + FDD Items 3, 5, 6, 12, 17
Risk & Legal
EVEN Hotels presents HIGH RISK due to going concern warnings, minimal systemwide scale (19 units), undisclosed financials, active litigation, and unprotected territories—suggesting a struggling brand with unproven unit economics and questionable corporate stability.
Score breakdown · what drove the 72 / 100 rating
- 01HIGHGoing concern warning indicates potential financial distress at corporate level
- 02MEDHigh initial investment ($16.9M-$25.2M) with no disclosed average unit volumes or net income to validate ROI
- 03MEDOnly 19 units systemwide suggests minimal scale, limited support infrastructure, and potential brand viability issues
- 04HIGHMultiple litigation cases including class actions and system access disputes indicate operational and governance problems
- 05MINORUnprotected territory creates direct competition risk and cannibalization potential within franchise network
- 06MINORNo Item 19 financial performance disclosure prevents due diligence validation of unit economics
- 07MINORUnknown or stagnant unit growth trajectory suggests market rejection or corporate inability to recruit franchisees
- 08MINOR5% royalty on gross rooms revenue with $75K franchise fee is aggressive given brand size and support capability
Severity inferred from the FDD text · not a regulatory classification
FDD Items 5, 6, 12, 17 · continued from Risk & Legal
Contract & Territory Detail
Item 11
Training & Operations
Item 20
Franchisee Contacts
Phone numbers extracted directly from this brand's FDD Item 20. After purchase, you'll also receive a list of validation questions tailored to this brand.
Franchisee contacts
21 numbers
One-time purchase · CSV download · Validation questions included
FDD download
EVEN Hotels · FDD (2024) PDF