For Crowne Plaza, what deductions are made from settlements for transactions?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
All settlements to you for your transactions will be net of Credits, adjustments, Servicers Fees, Third Party Based Fees, Chargebacks, and any other amounts then due from you.
- 5.3 Payments to You Are Provisional. All credits to your Settlement Account or other payments to you are provisional and are subject to, among other things, our right to deduct our fees provided no such amounts are disputed by you in good faith, our final audit, Chargebacks (including our related losses), and Third Party Based Fees (including fees, fines, and any other charges imposed on us by the Card Organizations due to your noncompliance with Card Organizations Rules).
You agree that we may debit or credit your Settlement Account for any deficiencies, overages, fees, Servicers Fees, Third Party Based Fees, pending Chargebacks, and any other amounts owed to us or any of our respective Affiliates, or we may deduct such amounts from settlement funds or other amounts due to you from us, or our respective Affiliates for Services provided under the Agreement.
Alternatively, we may elect to invoice you for any such amounts, net due 30 days after your receipt of the invoice.
5.4 Good Faith Disputes. Notwithstanding anything to the contrary in the Agreement, if any amounts debited, credited, or otherwise deducted by us are disputed by you in good faith, we will use good faith efforts to work with you to resolve the dispute in a timely manner and promptly return any such disputed amounts that are owed to you.
5.5 Funding Delays. We will not be liable for any delays in receipt of funds or errors in debit and credit entries caused by you or any Third Party, including, without limitation, any delay in settlement funding for a Card transaction from a Card Organization to us.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, settlements for transactions are subject to several deductions. These deductions include Credits, adjustments, Servicers Fees, Third Party Based Fees, Chargebacks, and any other amounts then due from the franchisee. This means the franchisee will not receive the gross amount of their transactions; instead, various fees and potential liabilities are subtracted first.
The FDD specifies that all credits to the franchisee's Settlement Account are provisional. This means that even after funds are initially credited, Crowne Plaza retains the right to deduct fees, audit results, Chargebacks, and Third Party Based Fees. Chargebacks can occur if a customer disputes a charge, and the franchisee may be responsible for the disputed amount and related losses. Third Party Based Fees include charges imposed by Card Organizations (like Visa or Mastercard) due to the franchisee's noncompliance with Card Organization Rules.
Crowne Plaza is also permitted to debit or credit the franchisee's Settlement Account for deficiencies, overages, fees, pending Chargebacks, and any other amounts owed to them or their affiliates. Alternatively, Crowne Plaza can invoice the franchisee for these amounts, with payment due 30 days after receipt of the invoice. However, if the franchisee disputes any deducted amounts in good faith, Crowne Plaza will attempt to resolve the dispute and promptly return any amounts owed to the franchisee.
It is important to note that Crowne Plaza is not liable for delays in receiving funds or errors in debit and credit entries caused by the franchisee or any third party, including delays in settlement funding from Card Organizations. This places the onus on the franchisee to ensure accurate and timely transaction processing to avoid potential financial repercussions.