Who bears the cost of purchasing and installing then-current approved Software and approved Hardware described in the Minimum Configuration for a Crowne Plaza?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisee, referred to as the Licensee, is responsible for the costs associated with purchasing and installing approved software and hardware that meets the minimum configuration requirements. Specifically, within 90 days of any update to the Minimum Configuration by IHG, the Licensee must purchase and install the then-current approved software and hardware, and decommission any hardware and software that is no longer approved, all at the Licensee's expense. This ensures that each Crowne Plaza location maintains the technology standards set by IHG.

This requirement has significant financial implications for prospective Crowne Plaza franchisees. Franchisees need to budget not only for the initial technology setup but also for ongoing upgrades and replacements as IHG updates the Minimum Configuration. The frequency and cost of these updates are not specified, making it crucial for potential franchisees to understand the typical lifecycle and expense of the required hardware and software. Failing to comply with these technology standards could lead to operational inefficiencies or even a breach of the franchise agreement.

Furthermore, the Licensee is responsible for ensuring their hardware, software, and network environment meet the Minimum Configuration requirements at their own cost. This includes the initial setup and any subsequent updates. The FDD also states that the Licensee is responsible for the costs of site preparation work performed by IHG or service providers, as well as the costs associated with the installation of any hardware or software not part of the Minimum Configuration. This highlights the importance of careful planning and budgeting for technology-related expenses when considering a Crowne Plaza franchise.

In addition to the costs of hardware and software, the Licensee is also responsible for the wide area network (WAN) installation fee according to IHG's or a Service Provider's standard rates. The Licensee must also purchase broadband Internet access at the hotel to establish the primary WAN link. These costs further contribute to the overall technology expenses that a franchisee must bear. It is important for prospective franchisees to inquire about the typical costs associated with these requirements to accurately assess the financial investment needed to operate a Crowne Plaza franchise.