When is the Capital Reserve fee due for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | |||
|---|---|---|---|
| Capital Reserve | Up to 5% of Gross Revenue (see Paragraph 13.O of License). | Monthly if required by Holiday | Note 4 |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Capital Reserve fee, if required by Holiday, is due monthly. The amount can be up to 5% of Gross Revenue. This reserve is intended for capital expenditures and upgrades to the hotel, including renovations of public areas, guest rooms, corridors, and replacement of furniture, fixtures, and equipment.
Crowne Plaza franchisees should be aware that Holiday (likely referring to IHG, the parent company) may periodically impose or change these capital reserve requirements. Franchisees will receive at least ninety days' notice before any establishment or change in the Capital Reserve requirements.
It's important to note that the Capital Reserve may not always be sufficient to cover all necessary maintenance and upgrades to maintain the hotel's standards. Franchisees are responsible for providing any additional funds needed to meet Holiday's product quality and consumer quality requirements.