factual

What is the deadline for completing the 'Ground Break' of a Crowne Plaza hotel, as defined in the FDD?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

Licensee must complete "Ground Break" of the Hotel by the Ground Break Due Date set forth in Attachment "A") and continuously construct and furnish the Hotel in accordance with the Final Plans and the Standards so that the Hotel opens in the Brand System by the Opening Deadline set forth in section B.9. below. "Ground Break" means the completion of the Hotel building foundation through ground-level or the completion of the finished ground floor slab.

Licensee must provide photo documentation of Ground Break to IHG within one day thereafter.

Licensee must submit for IHG's review and approval any and all signage, shop drawings, guest room FF&E and Public Area FF&E plans and associated specifications as outlined in the submittal guidelines ("FF&E Specs") to IHG, as designed and prepared by a licensed or accredited design professional with commercial building design background, no later than thirty (30) days after Ground Break.

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

What This Means (2025 FDD)

According to the 2025 Crowne Plaza Franchise Disclosure Document, the deadline for completing the 'Ground Break' of a hotel is determined by the 'Ground Break Due Date' outlined in Attachment A of the franchise agreement. The FDD defines 'Ground Break' as the completion of the hotel building's foundation up to ground level, or the completion of the finished ground floor slab.

For a prospective Crowne Plaza franchisee, this means that meeting the 'Ground Break Due Date' is a critical milestone in the construction process. Failing to meet this deadline could potentially lead to delays in the overall project and impact the hotel's opening date. The franchisee is also required to provide photo documentation of the 'Ground Break' to IHG (InterContinental Hotels Group) within one day of completion, ensuring that the franchisor is kept informed of the construction progress.

Furthermore, the FDD states that franchisees must continuously construct and furnish the hotel in accordance with the approved Final Plans and Standards, ensuring that the hotel opens within the Brand System by the 'Opening Deadline' also specified in Attachment A. This highlights the importance of adhering to the franchisor's standards and timelines throughout the construction phase to maintain brand consistency and quality.

In addition, the franchisee must submit various plans and specifications for IHG's review and approval within 30 days after the Ground Break, including signage, shop drawings, guest room FF&E (furniture, fixtures, and equipment), and public area FF&E plans. This requirement underscores the franchisor's involvement in overseeing the design and construction aspects of the hotel to ensure compliance with brand standards and quality expectations.

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.