factual

What is the custom development fee charged by servicers to Crowne Plaza franchisees?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

If Licensee requires any custom services for its particular location, IHG reserves the right to decline to perform such services or to charge a fee related to the additional services required.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to the 2025 Crowne Plaza FDD, if a franchisee requires any custom services for their particular location, IHG reserves the right to either decline to perform such services or to charge a fee related to the additional services required. This means that franchisees may incur extra costs if they need specific modifications or adaptations to the standard Crowne Plaza systems or services to suit their hotel's unique needs.

This policy gives Crowne Plaza flexibility in addressing non-standard requests. It also means that franchisees need to be aware that any deviation from the standard franchise model could result in additional fees. Franchisees should discuss potential customization needs upfront to understand the possible financial implications.

It is common practice in franchising for franchisors to charge extra for custom development or services that fall outside the standard franchise package. This allows the franchisor to cover the costs of providing specialized support while maintaining consistency across the franchise system. Prospective Crowne Plaza franchisees should inquire about the types of customizations that typically incur fees and the general range of those costs to better prepare their budget.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.