To whom are the Building Construction costs payable for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|---|---|---|
| Building Construction | $9,952,000 to $ 66,419,000 | As required | 3rd parties |
| ( Note 2) (Note 3) |
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 payable to third parties as required. This indicates that franchisees will need to contract with and pay independent construction companies for the building of their Crowne Plaza hotel.
This is a significant investment and a crucial aspect of setting up a Crowne Plaza franchise. The wide range in cost suggests that the final amount will depend heavily on factors such as the size of the hotel, the location, and the complexity of the construction project. Prospective franchisees should obtain detailed construction bids and carefully evaluate their financing options.
It is typical in the franchise industry for building construction costs to be paid to third-party contractors. Franchisees usually have the responsibility of managing the construction process, although Crowne Plaza may have certain brand standards or approved vendor lists that franchisees must adhere to. Franchisees should clarify with Crowne Plaza what level of control or input they have over the selection of contractors and the construction process itself.