Does any agreement between IHG and another party provide any benefit to the Crowne Plaza licensee?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
From time to time, IHG or an Affiliate of IHG may enter into an Enabling Agreement with a Service Provider to provide optional Hardware, Software, and Services that are not included in the Core Services or the Additional Required Services ("Optional Services").
As determined by IHG, Licensee may receive the benefits of the negotiated terms, conditions, and pricing for the Optional Services obtained by IHG in the Enabling Agreements with Service Providers, and may obtain the Optional Services, by entering into an Order Form and/or a Participation Agreement.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, IHG (InterContinental Hotels Group) may enter into Enabling Agreements with Service Providers to offer optional Hardware, Software, and Services that are not included in the Core Services or the Additional Required Services (Optional Services). As determined by IHG, Crowne Plaza licensees may benefit from the negotiated terms, conditions, and pricing for these Optional Services obtained by IHG in these Enabling Agreements with Service Providers. To obtain these Optional Services, a licensee would need to enter into an Order Form and/or a Participation Agreement.
This arrangement allows Crowne Plaza franchisees to potentially access services at more favorable terms than they might be able to negotiate individually. However, the availability and specific benefits depend on IHG's decisions and the franchisee's participation in the required agreements. It's important for prospective franchisees to understand that these Optional Services are not guaranteed and are subject to IHG's discretion.
This type of arrangement is common in franchising, where the franchisor leverages its size and negotiating power to secure better deals for its franchisees. However, franchisees should carefully review the terms of any Order Form or Participation Agreement to ensure they understand the costs and benefits before committing to any Optional Services.