What is the definition of 'Business Day' according to the Crowne Plaza agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
For each month (or part of a month) during the License Term, Licensee will pay the fees set forth in this paragraph 3.B. to IHG, which shall be due to IHG by the "Due Date" (except as otherwise noted below including, without limitation, the Technology Services Fee and the Crowne Plaza Hotel Marketing Association Fee, which are payable monthly in advance). The term "Due Date" means the fifteenth (15th) day of the following month; but if the 15th day of the month falls on a weekend or bank holiday, then the Due Date shall be the next business day.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the term "Due Date" is defined in relation to fee payments. The Due Date is the fifteenth (15th) day of the following month. However, if the 15th day of the month falls on a weekend or bank holiday, the Due Date will be the next business day.
This definition is important for Crowne Plaza franchisees because it clarifies when payments are officially due. Franchisees need to be aware that if the regular due date falls on a weekend or bank holiday, they have until the next business day to make the payment without incurring late fees or risking a breach of contract. This ensures franchisees have adequate time to process payments, even when weekends or holidays might disrupt normal banking operations.
Understanding this definition helps franchisees manage their cash flow and payment schedules effectively, ensuring compliance with the franchise agreement and avoiding potential penalties. It is a fairly standard practice to extend due dates that fall on non-business days, providing a reasonable accommodation for franchisees.