When accepting cards as payment for Crowne Plaza, what risks is the franchisee agreeing to accept?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Cards present risks of loss and non-payment that are different than those with other payment systems, including risks related to Chargebacks and other Cardholder disputes.
In deciding to accept Cards, you should be aware that you are also accepting these risks and that you are agreeing to comply with the rules and requirements of Visa®, Mastercard®, Discover®, American Express®, and other Card Organizations.
With respect to Chargebacks – we do not decide which transactions are charged back and we do not control the ultimate resolution of Chargebacks.
While we can attempt to reverse a Chargeback to the Issuer, we can only do so only if the Issuer agrees to accept it or the Card Organization requires the Issuer to do so after a formal appeal process.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, franchisees accepting cards as payment must understand the associated risks. These risks include potential losses and non-payment, which are inherent to card transactions and differ from other payment methods. Specifically, franchisees face risks related to chargebacks and other cardholder disputes.
The agreement stipulates that franchisees must comply with the rules and requirements set by Visa, Mastercard, Discover, American Express, and other card organizations. This compliance is mandatory for accepting card payments at Crowne Plaza hotels. The FDD makes it clear that Crowne Plaza does not decide which transactions are charged back and does not control the resolution of chargebacks.
While Crowne Plaza can attempt to reverse a chargeback, its success depends on the issuer's acceptance or the card organization's requirement after a formal appeal. Therefore, franchisees bear the ultimate risk of financial loss from chargebacks and must factor this potential liability into their business operations. Understanding and managing these risks is crucial for maintaining financial stability when operating a Crowne Plaza franchise.