What additional fees are Crowne Plaza Hotels responsible for besides the prices quoted in the Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Co-op programs attributable to the Hotel, and all fees due in connection with mandatory marketing, technology, guest satisfaction, quality assurance, training, new hotel opening and other systems and programs established by IHG or its Affiliates relating to the Brand System; and an amount equal to any sales, trademark license, gross receipts or similar tax imposed on IHG and calculated solely on payments required hereunder, unless the tax is an optional alternative to an income tax otherwise payable by IHG.
Local and regional marketing programs and related activities may be conducted by Licensee, but only at Licensee's expense and subject to IHG's requirements and the Standards. Reasonable charges may be made for optional advertising materials ordered or supplied by IHG to Licensee for such programs and activities.
(7) Crowne Plaza Hotel Marketing Association. A fee in an amount equal to $3.00 per room, per month for mandatory participation in the Crowne Plaza Hotel Marketing Association. This amount is subject to change from time to time by the Crowne Plaza Hotel Marketing Association. Said fees shall be invoiced in advance, but paid in arrears along with all invoiced fees.
C. Additional Payment Terms.
IHG may, at its election at any time during the License Term, require Licensee to pay all outstanding fees by electronic funds transfer, direct account debit, ACH or other similar technology designed to accomplish the same purpose as may be designated by IHG.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, franchisees are responsible for several additional fees beyond those initially outlined in the franchise agreement. These include a mandatory contribution to the Crowne Plaza Hotel Marketing Association, set at $3.00 per room per month, which can be adjusted by the association. Franchisees may also incur charges for optional advertising materials ordered from IHG for local and regional marketing programs.
Additional costs may arise from the Next-Gen Payments Solution, with fees invoiced monthly by IHG. These fees are collected by Fiserv as part of the settlement reconciliation for most transactions. Late payments are subject to interest, calculated at the lesser of 1½% per month or the maximum rate allowed by law, and failure to pay can result in suspended access to the payment solution and responsibility for collection and attorney fees. Furthermore, franchisees are responsible for all taxes resulting from the Next-Gen Payments Solution.
Franchisees also bear the costs for services related to the IHG Voice Reservation Service, including monthly service fees charged by local phone vendors and programming expenses for setting up and maintaining the reservation service link. Additionally, a fee of $7.65 per net booking applies to reservations made by the Office for the hotel. This fee can be modified by SCH once per calendar year, with increases capped at ten percent of the previous fee. These various fees contribute to the overall cost of operating a Crowne Plaza franchise and should be carefully considered by potential franchisees.