What constitutes a 'competing business' that a Crowne Plaza franchisee is prohibited from facilitating or promoting?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide the Hotel services described in Attachment A to your License and must ensure that no part of the Hotel or the Brand System is used to facilitate or promote a competing business. There are no restrictions as to the customers to whom you may sell guest rooms or other goods or services that are related to your Hotel business.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a franchisee must provide the hotel services detailed in Attachment A of their license agreement. The franchisee must ensure that no part of the hotel or the Brand System is used to facilitate or promote a competing business.
This means a Crowne Plaza franchisee is restricted from using any aspect of their franchised hotel, or the systems associated with the Crowne Plaza brand, to support or advertise any business that competes with the services offered by Crowne Plaza hotels. However, there are no restrictions regarding the customers to whom the franchisee may sell guest rooms or other goods or services related to their hotel business.
In practical terms, a franchisee cannot operate a competing hotel brand within their Crowne Plaza location or actively promote another hotel chain using Crowne Plaza resources. This restriction is typical in franchising, as franchisors seek to protect their brand and prevent franchisees from diverting business to competitors. Franchisees should carefully review Attachment A of their license agreement to fully understand the scope of required hotel services and ensure they do not inadvertently violate this restriction.