What is the condition for a Crowne Plaza to not allow existing bandwidth contracts to renew?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, hotels with existing contracts with bandwidth providers for Guest Internet Access (GIA) must allow those contracts to expire or terminate based on their existing terms. The hotel must provide appropriate notice as soon as the contract terms allow and must not renew the contracts.
If a contract extends more than one year after the effective date of the relevant standard, and the hotel has the right to terminate it for convenience (without cause) and without incurring any fees, the hotel must exercise that right. This ensures the contract terminates within that first year. This policy applies to contracts with bandwidth providers for Guest Internet Access (IHG Connect), hardware providers, and In-Room Entertainment providers.
This requirement ensures that Crowne Plaza hotels adopt approved providers and systems for guest internet access, hardware, and in-room entertainment. By preventing the renewal of existing contracts, Crowne Plaza aims to standardize these services across all its locations, potentially improving service quality and brand consistency. However, franchisees need to carefully review their existing contracts and be prepared to terminate them, possibly incurring costs if termination for convenience is not an option or involves fees.