To whom is the Comfort Letter Processing Fee payable for a Crowne Plaza franchise?
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 the 2025 Crowne Plaza Franchise Disclosure Document, the Comfort Letter Processing Fee is payable to Holiday. This fee amounts to $2,500 for the preparation and processing of any mezzanine, replacement, or subsequent comfort letters after the initial senior lender letter.
The fee is due upon demand, meaning Crowne Plaza can request payment at any time after the service is provided. However, the FDD also notes that IHG (InterContinental Hotels Group), the parent company of Crowne Plaza, may waive this fee at its discretion.
Comfort letters are typically required by lenders when a franchisee seeks financing, so this fee would be incurred if a franchisee needs additional or updated comfort letters beyond the initial one. Franchisees should factor this potential cost into their financial planning, especially if they anticipate needing to refinance or adjust their financing arrangements during the term of their franchise agreement. It's also worth noting the possibility of a waiver from IHG, which could provide some financial relief in certain circumstances.