factual

Besides ongoing repair and maintenance, what significant renovations must a Crowne Plaza franchisee complete?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

Using the same requirements applicable generally to Hotels under the Brand System in the same category as your Hotel, Holiday may require substantial modernization, renovation and other upgrading of your Hotel at any time. Holiday may make limited exceptions from those requirements based on local conditions or special circumstances.

Holiday provides written specifications for products and materials for you to use in the upgrading, construction and furnishing of the Hotel in the form of a Property Improvement Plan or "PIP", which will be an attachment to your License. The PIP provides: (i) specific renovations and alterations required to meet the requirements of the Standards and Holiday's product quality requirements; (ii) specific dates by which you must submit plans and drawings; and (iii) beginning construction dates and interim milestone and completion dates for the Hotel and for opening the Hotel for business. Any design work submitted by unqualified individuals hired by you will be rejected and your Hotel can be subject to Plan default, resulting in an assessment of fees under the terms of your License. The fee for such Plan default

will be up to $5,000. You may be required to remove any non-approved product installed in your Hotel that has not been approved by IHG Plan Review explicitly in writing before installation.

Under the Crowne Plaza Bulk Bath Amenity Program, all Crowne Plaza brand group hotels must install in all guestrooms the approved bath components that comply with the Guest Bathroom and Supplies and Amenities standards and the IHG Journey to Tomorrow initiative. Approved IHG suppliers have been identified for Crowne Plaza bath amenities. To ensure brand-wide consistency of quality, look and feel, you must purchase the Crowne Plaza bath amenities and bulk amenity brackets from the specified vendors. Under the Crowne Plaza Fitness Center program, all Crowne Plaza brand group hotels must install the fitness center design elements outlined in the section of the Standards regarding fitness centers. Additionally, approved equipment vendors have been identified and all equipment purchases must go through one of the three approved vendors outlined in the section of the Standards regarding fitness centers. Lastly, minimum fitness center square footage requirements which must be adhered to are also outlined in the section of the Standards regarding fitness centers. All plans must be submitted to the IHG PIP and Plan Review team at amerplanreview@ihg.com for review and approval prior to ordering any equipment or design elements.

Source: Item 10 — Financing (FDD page 69)

What This Means (2025 FDD)

According to the 2025 Crowne Plaza Franchise Disclosure Document, franchisees may be required to complete substantial modernizations, renovations, and upgrades to their hotels at any time, aligning with the brand's standards and the category of the hotel. These requirements are communicated through a Property Improvement Plan (PIP), which is attached to the franchise license. The PIP outlines specific renovations and alterations needed to meet Crowne Plaza's standards and product quality requirements, including deadlines for submitting plans and drawings, construction start dates, and completion dates.

The Crowne Plaza franchisee is responsible for using written specifications for products and materials provided by Holiday when upgrading, constructing, and furnishing the hotel. Failure to adhere to these specifications or using unqualified individuals for design work can result in the rejection of the design and a Plan default fee of up to $5,000. Additionally, franchisees may be required to remove any non-approved product installed in the hotel if it has not been explicitly approved in writing by IHG Plan Review before installation.

Moreover, all Crowne Plaza hotels must adhere to specific brand standards, such as installing approved bath components that comply with Guest Bathroom and Supplies and Amenities standards, as well as the IHG Journey to Tomorrow initiative. Similarly, fitness centers must incorporate design elements and equipment from approved vendors, meeting minimum square footage requirements. All plans must be submitted to the IHG PIP and Plan Review team for approval before any equipment or design elements are ordered, ensuring brand consistency and quality across all locations.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.