What is the condition for a Crowne Plaza's monthly NGP fee to increase?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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 franchisee's monthly Next-Gen Payment (NGP) fee may increase based on increases in costs incurred by SCH (presumably a third-party vendor) to provide the service. The increase is capped at no more than 5% of the original quoted rate. The exact amount of the fee will be defined on the quote received prior to installation.
This means that while the initial NGP fee is determined before installation, Crowne Plaza franchisees should be aware that this fee is not fixed. It can fluctuate depending on the service provider's costs. The 5% cap offers some protection against drastic increases, but franchisees should still factor in potential cost adjustments when budgeting.
Prospective Crowne Plaza franchisees should carefully review the NGP agreement and the initial quote to understand the specific terms and conditions related to potential fee increases. It would be prudent to inquire about the factors that could trigger cost increases for SCH and how often these fees have been adjusted in the past to better anticipate future expenses.