What costs associated with the opening team are the responsibility of the Crowne Plaza licensee?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG may provide an opening team to assist in the opening of the Hotel as a Brand System Hotel and to perform cultural training the Hotel employees in accordance with the Standards.
The team members will remain at the Hotel for such time as IHG deems appropriate to open the Hotel as a Brand System Hotel.
Licensee will pay IHG's costs associated with providing such assistance, including the Openings and Renovations Fee and travel costs.
Licensee will pay the travel and related expenses of, and shall provide lodging and meals to, IHG's and/or the Service Provider's personnel (or a reasonable per diem meal allowance).
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, if IHG provides an opening team to assist in the hotel opening, the licensee is responsible for covering certain costs. This team assists in opening the hotel as a Brand System Hotel and trains hotel employees in accordance with the brand's standards. The duration of the team's stay is determined by IHG.
The licensee is obligated to pay IHG's costs related to this assistance, specifically the Openings and Renovations Fee and travel costs. Additionally, the licensee must cover the travel and related expenses, lodging, and meals for IHG and/or the Service Provider's personnel, or provide a reasonable per diem meal allowance.
This means that in addition to a specific Openings and Renovations Fee, a new Crowne Plaza franchisee should budget for the expenses of the opening team, including travel, accommodation, and meals. These costs can vary depending on the team size, location, and duration of their stay, so it's important to clarify these details with Crowne Plaza during the franchise process.