What constitutes a 'competing business' that a Crowne Plaza licensee is prohibited from facilitating or promoting?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday and its affiliates licenses numerous hotel brands – see Item 1. Holiday and its affiliates may license other hotel brands in the future. There may currently be licensed, company-owned hotels or company-managed hotels operating under the IHG Portfolio Brands situated in or near your area. Holiday and its affiliates may establish new licensed, company-owned or company-managed hotels operating under the IHG Portfolio Brands in or near your area. You may compete with any other hotels operating under Holiday's brands in or near your area. Hotels operating under the IHG Portfolio Brands (including the same brand as your Hotel) may solicit reservations from customers in your area for which you will receive no compensation.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 87)
What This Means (2025 FDD)
Based on the 2025 Franchise Disclosure Document, the definition of what constitutes a 'competing business' for a Crowne Plaza licensee is not explicitly detailed within the provided excerpts. However, the FDD does state that Holiday Hospitality Franchising, LLC and its affiliates license numerous hotel brands and may license other hotel brands in the future. There may currently be licensed, company-owned hotels or company-managed hotels operating under the IHG Portfolio Brands situated in or near a franchisee's area, and new ones may be established.
This means a Crowne Plaza franchisee may face competition from other hotels operating under Holiday's brands, including those within the IHG Portfolio Brands, which could be considered competing businesses. The FDD also indicates that these other hotels may solicit reservations from customers in the franchisee's area without any compensation to the franchisee.
To fully understand the scope of prohibited activities and what Holiday Hospitality Franchising, LLC considers a 'competing business,' prospective franchisees should seek clarification from the franchisor regarding specific restrictions outlined in the license agreement. This includes understanding any limitations on involvement with other hotel brands or hospitality services, as well as the geographical scope of any competitive restrictions.