What is the condition for a Crowne Plaza to allow existing contracts with bandwidth providers to expire or terminate?
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. If a Hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is still in effect, the licensee shall be liable for payments to IHG of an early termination fee equal to (X) the number of months remaining on the term of the IHG Connect Participation Agreement multiplied by (Y) the monthly fees due under the IHG Connect Participation Agreement. Such payment is due within 30 days following the termination date and all equipment must be returned to the vendor within 30 days of circuit disconnection or the hotel will be subject to hardware costs.
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 for Guest Internet Access (GIA) bandwidth or In-Room Entertainment providers must allow these contracts to expire or terminate based on their own terms. Crowne Plaza requires franchisees to provide appropriate notice as soon as the terms of those contracts permit, preventing automatic renewals.
If a contract extends more than one year beyond the effective date of Crowne Plaza's standards, the franchisee must terminate the contract within that year, provided they have the right to terminate for convenience (without cause) and without incurring any fees. This ensures that hotels transition to Crowne Plaza's approved providers within a reasonable timeframe.
For Guest Internet Access (GIA) bandwidth, if a hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is still in effect, the licensee will be liable for an early termination fee. This fee is calculated by multiplying the number of months remaining on the agreement by the monthly fees due. Payment is due within 30 days of termination, and all equipment must be returned to the vendor within 30 days of circuit disconnection to avoid additional hardware costs. This policy is designed to ensure a smooth transition and prevent service disruptions or unexpected price increases.