What is the Comfort Letter Processing Fee for a Crowne Plaza franchise, and to whom is it payable?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
• Fail third quarter = Assess | Quarterly Assessment appears on invoice (Payable to SCH) | Note 24 |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| $2,500 /standard • Fail fourth quarter = Assess $5,000/standard • Capped at $5,000 per quarter | |||
| Employee Engagement Survey | $7 to $12 per employee each year | Annually (Payable to designated third party provider) | Note 25 |
| F&B POS Support | $45.00 per workstation per month | Monthly (Payable to an approved supplier) | Note 7 |
| Comfort Letter Processing Fee | $2,500 for the preparation and processing of any mezzanine, replacement or subsequent comfort letters after the initial senio |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, a Comfort Letter Processing Fee is required for the preparation and processing of mezzanine, replacement, or subsequent comfort letters after the initial senior lender letter. This fee amounts to $2,500.
The fee is payable to Holiday, which is likely the parent company or a related entity of Crowne Plaza. The fee is due upon demand, meaning Holiday will request payment when the service is needed.
It's worth noting that IHG (InterContinental Hotels Group), may waive this fee at its discretion. This waiver could depend on various factors, such as the franchisee's history with IHG or specific circumstances of the financing. Prospective franchisees should inquire about the conditions under which a waiver might be granted.