What is the dependency for a Crowne Plaza to terminate for convenience (without cause) an existing bandwidth contract?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, if a hotel has an existing contract with a bandwidth provider for Guest Internet Access (GIA) and the contract extends more than one year after the effective date of the relevant Crowne Plaza standards, the hotel must act to terminate the contract within that year. This is contingent on the hotel having the right to terminate the contract for convenience, meaning without cause, and without incurring any fees.
This requirement ensures that all Crowne Plaza hotels comply with the brand's approved Guest Internet Access (IHG Connect) program and use an approved SCH-certified provider. By mandating the termination of conflicting contracts, Crowne Plaza aims to maintain consistent service standards and potentially leverage negotiated rates with preferred providers.
For a prospective franchisee, this means carefully reviewing any existing bandwidth contracts before affiliating with Crowne Plaza. If such contracts exist and meet the specified conditions (extending beyond one year, having a termination for convenience clause without fees), the franchisee must exercise their right to terminate the contract promptly to align with Crowne Plaza's requirements. Failure to do so could result in a breach of the franchise agreement or inability to meet brand standards for guest internet access.