What is the condition for a Crowne Plaza to terminate for convenience (without cause) an existing bandwidth contract?
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, if a hotel has an existing contract with a bandwidth provider for Guest Internet Access (GIA), the franchisee must allow the contract to expire or terminate based on its own terms, and they are not allowed to renew it. The franchisee should provide appropriate notice as soon as the contract terms permit.
Specifically, if the existing contract extends more than one year beyond the effective date of Crowne Plaza's GIA standards, and the hotel possesses the right to terminate the contract for convenience (without cause) without incurring any fees, then the franchisee is obligated to exercise that right. This action ensures that the contract terminates within that one-year timeframe.
This requirement ensures that all Crowne Plaza hotels adhere to the brand's approved Guest Internet Access (IHG Connect) program and use SCH-certified providers. Failing to comply with this standard could result in the hotel not meeting brand standards for guest internet access, potentially affecting guest satisfaction and the hotel's overall rating within the Crowne Plaza system.