In the context of the agreement described, what is the role of the 'Supplier' in relation to Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
censee access to reservation service for the Hotel under the terms of the Master Technology Services Schedule set forth in Attachment "D" hereto. However, IHG has no obligation to afford Licensee access to reservation service for the Hotel regarding reservations for any date after the expiration date of this License or for any date after the termination date established by IHG, following any applicable notice period or any applicable opportunity to cure.
C. Consultation on Operations, Facilities and Marketing.
During the License Term, IHG shall have the right (but not the obligation) to make available to Licensee consultation and advice in connection with operations, facilities and marketing. IHG may from time to time furnish to Licensee names of suppliers or recommend to Licensee suppliers of goods and services required or useful in the operation of the Hotel; however, IHG is not obligated to furnish any such names or to continue doing so, and Licensee is under no obligation to use any such supplier, unless expressly required to do so by the terms of this License, the Standards or otherwise. In identifying or recommending suppliers, IHG exercises its business judgment based on its information as of that date and its sense of the long-term interests of the Brand System. IHG's identification or recommendation of a supplier is not a warranty of the financial condition or performance of any supplier or of any other factor. Licensee's use of an identified or recommended supplier that sells products or services meeting IHG's standards and specifications may facilitate compliance with those standards and specifications, but it is not a substitute for Licensee's compliance obligations.
D. Maintenance of Standards.
IHG will seek to maintain high standards of quality, cleanliness, appearance, design and service at all hotels using the Brand System so as to promote, protect and enhance the public image and reputation of the Crowne Plaza® name and to increase the demand for services offered by the Brand System. IHG's
judgment in such matters shall be controlling in all respects, and it shall have wide latitude in making such judgments.
E. Application of Standards.
The Hotel and all other hotels operated under the Brand System will be subject to the Standards, as they may from time to time be modified or revised by IHG, including limited exceptions from compliance which may be made based on local conditions, type of hotel or special circumstances.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, IHG (InterContinental Hotels Group), the franchisor, may provide franchisees with the names of suppliers for goods and services needed to operate the hotel. However, Crowne Plaza franchisees are generally not obligated to use these suppliers unless explicitly required by the license agreement, standards, or other stipulations. IHG's recommendations are based on their business judgment and the long-term interests of the brand.
IHG's role in identifying or recommending suppliers does not constitute a warranty of the supplier's financial condition or performance. The franchisee is still responsible for meeting Crowne Plaza's standards and specifications, even if they use a recommended supplier. Using an IHG-recommended supplier that meets the brand's standards can help franchisees comply with these standards.
Furthermore, in the context of services IHG provides to a Participating Property, if the property misses the communicated date for readiness for installation of fiber, equipment, or other required installations, or if the supplier cannot reasonably access the site for the installation, the Participating Property may be assessed a fee. Similarly, if the Participating Property cancels the required installation, they may be assessed a cancellation fee. These fees are part of the payment obligation to IHG.