Is the Application Fee for a Crowne Plaza franchise refundable?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Payment of the Application Fee must be made when you submit your Application. The Application Fee becomes non-refundable upon IHG approval of your Application.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the application fee is initially refundable but becomes non-refundable once IHG (InterContinental Hotels Group) approves the application. This means that a prospective franchisee can get their application fee back if they withdraw their application before IHG's approval. However, once IHG gives the green light, the fee is forfeited, regardless of whether the franchisee proceeds with the franchise agreement.
This policy is fairly standard in the franchise industry. Franchisors often use application fees to cover the costs of reviewing applications and conducting due diligence on potential franchisees. Making the fee non-refundable after approval helps Crowne Plaza recoup these expenses, even if the applicant later decides not to move forward.
It is important for potential Crowne Plaza franchisees to carefully consider their decision before submitting their application, as well as to understand the conditions under which the application fee becomes non-refundable. They should also note the instruction in the FDD to wait at least 14 days after receiving the Franchise Disclosure Document before signing the application and paying the fee.