When is the Comfort Letter Processing Fee payment due 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 due upon demand. 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 payment is made to Holiday, the parent company. However, IHG (InterContinental Hotels Group) may, at its sole discretion, waive this fee.
In practical terms, this means that if a Crowne Plaza franchisee requires comfort letters beyond the initial one, they should be prepared to pay $2,500 when Holiday requests it. Comfort letters are often needed when securing financing or making changes to existing loan agreements, so this fee could arise during the course of operating the franchise.
It's important for prospective franchisees to understand that while the fee is typically due upon demand, there is a possibility of a waiver from IHG. Franchisees should inquire about the circumstances under which IHG might grant such a waiver and factor the potential cost into their financial planning. Understanding the conditions for a waiver, if any, can help in anticipating and managing this expense.