What is the definition of 'Brand System Hotel(s)' in relation to the Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
"Brand System Hotel(s)" means the hotel(s) operated by IHG, an Affiliate of IHG, or a licensee or franchisee of IHG under the Brand System in any of the fifty (50) states of the United States of America, the District of Columbia, or Canada, and does not include any other hotel operated under a different brand or any other business operation of IHG.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a 'Brand System Hotel' refers to hotels operated by IHG (InterContinental Hotels Group), its affiliates, or its licensees or franchisees under the Crowne Plaza brand system within the United States of America, the District of Columbia, or Canada. This definition specifically excludes hotels operating under different brands or any other business operations of IHG. The Brand System encompasses all elements designed to identify Crowne Plaza hotels to the public, contribute to that identification, or reflect the quality standards and business practices associated with those hotels.
For a prospective Crowne Plaza franchisee, this definition clarifies the scope of the franchise agreement. It confirms that the rights granted are specific to operating a hotel under the Crowne Plaza brand within the defined geographic area and under IHG's established Brand System. It also highlights that the franchisee's rights do not extend to other IHG brands or business operations. Understanding this definition is crucial for franchisees to recognize the boundaries of their licensed rights and obligations.
The FDD also indicates that IHG has the right to periodically change the Brand System by adding, modifying, altering and/or deleting elements of the Brand System. This means that the elements that comprise the Brand System Hotels are subject to change during the term of the license agreement.
It is important for potential franchisees to understand that the Brand System is subject to change and that their rights are limited to the Crowne Plaza brand within the specified geographic area. They should also be aware that IHG operates other brands and business operations to which the franchise rights do not extend.