Are certain fees assessed from Crowne Plaza franchisees remitted to the Group Owner?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
You consent to our providing you the Services in accordance with the Group Owner Instructions and you waive all claims you may have against us, and related losses, arising from our following the Group Owner Instructions.
- (e) Remitting Fees to Group Owner. Depending on our and your relationship with the Group Owner, certain fees that are assessed and collected pursuant to the Agreement may be assessed and collected on behalf of the Group Owner and remitted to the Group Owner.
You authorize us to assess, collect, and remit to the Group Owner such fees.
- (f) Waiver of Liability. We are not responsible for determining whether you are a Group Member.
We shall not have any liability to you in connection with any of our acts and omissions under this Section 2.6, regardless of whether you are or are not a Group Member.
You waive all claims, suits, and causes of action against us, and all related losses, related to our acts and omissions under this Section 2.6.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, certain fees collected from franchisees may be remitted to a "Group Owner," depending on the relationship between the franchisor, the franchisee, and the Group Owner. The franchisee consents to Crowne Plaza providing services in accordance with the Group Owner's instructions and waives any claims against Crowne Plaza arising from following those instructions.
Specifically, Crowne Plaza is authorized to assess, collect, and remit fees to the Group Owner on behalf of the Group Owner. This arrangement means that a portion of the fees a franchisee pays may not be retained by Crowne Plaza but instead passed on to a third party.
The FDD stipulates that Crowne Plaza is not responsible for determining whether a franchisee is a Group Member and bears no liability for its actions related to this section, regardless of the franchisee's Group Member status. The franchisee waives all claims against Crowne Plaza related to these actions. This arrangement protects Crowne Plaza from potential disputes arising from the remittance of fees to the Group Owner.
Prospective franchisees should investigate whether a Group Owner is involved in their specific franchise agreement and understand the implications of this relationship, including which fees are remitted and the Group Owner's instructions that Crowne Plaza must follow. This information is crucial for understanding the full financial obligations and operational requirements of the franchise.