What is the condition for a Crowne Plaza to enter into a Next-Gen Payment Agreement with SCH?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Next-Gen Solutions: Upon activation of the NGP program at your Hotel, you will enter into a Next-Gen Payment Agreement with SCH (See Exhibit G-4). SCH will immediately bill you monthly and administer support for the hardware and software. All Hotels are required to use NGP or such successor payments program as may be implemented by SCH. Pursuant to the terms of the Next-Gen Payment Agreement, licensee will be liable for payment to IHG of an early termination fee for any reason equal to (x) 50% of the NGP monthly fee, multiplied by (y) the remaining monthly payments in the term.
Each licensee will be required to enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, and a participation agreement with SCH (see Exhibit G-4). Your monthly NGP fee may increase according to the terms of the NGP agreement signed at install (no more than a 5% increase from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, a Crowne Plaza hotel is required to enter into a Next-Gen Payment Agreement with SCH upon activation of the NGP program at their hotel. SCH will then bill the hotel monthly and administer support for the hardware and software involved. The FDD stipulates that all Crowne Plaza hotels must use NGP or any successor payments program implemented by SCH.
This agreement also necessitates that each Crowne Plaza licensee enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, along with a participation agreement with SCH. The monthly NGP fee may be subject to increases, but no more than 5% from the original quoted rate, based on cost increases incurred by SCH to provide the service. The exact fee amount will be specified in a quote received before installation.
If a Crowne Plaza franchisee terminates the Next-Gen Payment Agreement early, they will be liable for an early termination fee. This fee is calculated as 50% of the NGP monthly fee, multiplied by the number of remaining monthly payments in the term. This condition highlights the importance of carefully considering the terms and potential costs associated with the NGP program before activation.