What constitutes a 'Customer Not Ready' (CNR) situation for a Crowne Plaza property, as defined in the Participation Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
c. For the purposes of this Participation Agreement, "Customer Not Ready" or "CNR" is defined as when the Participating Property's demarcation point (i) is not reasonably available or otherwise ready for fiber delivery from the Supplier; (ii) is still under construction; (iii) does not have permanent power sources; (iv) secured with a door and lock; or (v) does not have fiber panel or rack unit ready in the location previously communicated to IHG or to the Supplier. The location of fiber panel or rack unit described in (v) shall be determined at the time when the Participating Property and Supplier perform a walkthrough on the site of the Participating Property prior to any work that the Supplier performs ("Walkthrough") in connection with this Participation Agreement. Any fee assessed by the Supplier in connection with a CNR situation shall be paid promptly and in full by the Participating Property.
- d. Furthermore, in the event that the Participating Property's demarcation point is moved from the location agreed to by the Participating Property and the Supplier during the Walkthrough, any request to change or move the location of the demarcation point may result in a direct charge to the Participating Property to cover any and all additional capital expenditure expenses arising from any additional construction. Participating Property shall promptly and in full pay such direct charge to IHG when due.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, a 'Customer Not Ready' (CNR) situation, as defined in the Participation Agreement, occurs when the property is not adequately prepared for the installation of fiber and related equipment. Specifically, this includes instances where the demarcation point is not reasonably available or ready for fiber delivery from the supplier, is still under construction, lacks permanent power sources, is secured with a door and lock, or does not have a fiber panel or rack unit ready in the location previously communicated to IHG or the supplier. The location of the fiber panel or rack unit is determined during a walkthrough of the property conducted by the property and the supplier before any work begins.
If a Crowne Plaza property is deemed 'Customer Not Ready', the property will be assessed a fee by the supplier, which the property must promptly pay in full. Furthermore, if the property changes the location of the demarcation point after it has been agreed upon during the walkthrough, the property may incur a direct charge to cover any additional capital expenditure expenses resulting from the construction. The Crowne Plaza property is responsible for promptly paying this direct charge to IHG when it is due.
It is important for prospective Crowne Plaza franchisees to understand these conditions, as any delays or unpreparedness on their part can lead to additional fees and charges. Ensuring that the property meets all the necessary requirements before the installation process begins is crucial to avoid these costs. Franchisees should carefully coordinate with both IHG and the supplier to confirm the Site Ready Date and ensure that all preparations are completed in a timely manner. This proactive approach can help prevent CNR situations and the associated financial burdens.