When are the Building Construction costs due for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
a or Crowne Plaza Suites hotel.
These estimates do not include the cost of land and contingency funds or other items that Holiday cannot estimate.
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|---|---|---|
| Application Fee | $125,000 | Lump sum with | H oliday |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the building construction costs, which range from $9,952,000 to $66,419,000, are due 'as required' to third parties. This means the payment schedule for building construction will be determined by agreements made with the construction companies and other vendors involved in the project.
For a prospective Crowne Plaza franchisee, this indicates that managing construction expenses will involve careful negotiation and planning with contractors. Franchisees should expect to make payments at various stages of the construction process, as dictated by their agreements with these third parties. This contrasts with some franchise systems where the franchisor might handle construction and have a set payment schedule.
Given the substantial investment involved, it is crucial for franchisees to secure solid financing and maintain diligent oversight of the construction budget. Understanding the specific payment milestones and their financial implications will be essential for managing cash flow during the development phase. Franchisees should consult with experienced construction professionals and financial advisors to navigate these complexities effectively.