What is the definition of 'Credit' in the Crowne Plaza agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Charges will be invoiced. Any unpaid invoices will be handled as follows (the "Unpaid Invoice Procedure"): All unpaid invoices by a Hotel will be subject to Company's payment/credit terms and conditions applicable to such Hotel. Furthermore, Company may refuse to deliver further any Company Beverages to the affected Hotel until the unpaid invoice is satisfied.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza FDD excerpts, there is no explicit definition of 'Credit' provided within the context of the franchise agreement. However, the term 'credit' is implied within the context of payment terms related to equipment leases.
The FDD mentions an 'Unpaid Invoice Procedure' that addresses how Crowne Plaza handles unpaid invoices from hotels. This procedure involves subjecting unpaid invoices to the company's payment/credit terms and conditions applicable to the specific hotel. Furthermore, Crowne Plaza reserves the right to refuse further beverage deliveries to the affected hotel until the outstanding invoice is settled.
For a prospective Crowne Plaza franchisee, this indicates that maintaining good payment standing is crucial to avoid disruptions in supply and potential penalties as per the general credit terms. It would be prudent for a potential franchisee to seek clarification from Crowne Plaza regarding the specific credit terms and conditions applicable to them, including payment deadlines, late payment fees, and any potential impact on their franchise agreement.