factual

What is determined during the 'Walkthrough' between the Participating Property and Supplier under the IHG Direct Participation Agreement for Crowne Plaza?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

  • c. For the purposes of this Participation Agreement, "Customer Not Ready" or "CNR" is defined as when the Participating Property's demarcation point (i) is not reasonably available or otherwise ready for fiber delivery from the Supplier; (ii) is still under construction; (iii) does not have permanent power sources; (iv) secured with a door and lock; or (v) does not have fiber panel or rack unit ready in the location previously communicated to IHG or to the Supplier. The location of fiber panel or rack unit described in (v) shall be determined at the time when the Participating Property and Supplier perform a walkthrough on the site of the Participating Property prior to any work that the Supplier performs ("Walkthrough") in connection with this Participation Agreement. Any fee assessed by the Supplier in connection with a CNR situation shall be paid promptly and in full by the Participating Property.
  • d. Furthermore, in the event that the Participating Property's demarcation point is moved from the location agreed to by the Participating Property and the Supplier during the Walkthrough, any request to change or move the location of the demarcation point may result in a direct charge to the Participating Property to cover any and all additional capital expenditure expenses arising from any additional construction. Participating Property shall promptly and in full pay such direct charge to IHG when due.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, the 'Walkthrough' between the Participating Property (the franchisee) and the Supplier is when the location of the fiber panel or rack unit is determined. This walkthrough occurs on the site of the Participating Property before any work is performed by the Supplier in connection with the IHG Direct Participation Agreement.

This determination is important because if the Participating Property's demarcation point is moved from the location agreed upon during the Walkthrough, any request to change or move the location may result in a direct charge to the Participating Property. This charge would cover any additional capital expenditure expenses arising from additional construction. The Participating Property is responsible for promptly paying this direct charge to IHG when it is due.

Furthermore, the FDD defines "Customer Not Ready" or "CNR" in relation to the fiber delivery. One of the conditions for a CNR is when the Participating Property's demarcation point is not reasonably available or ready for fiber delivery from the Supplier. The location of the fiber panel or rack unit is determined during the Walkthrough, so ensuring this is ready is crucial to avoid being classified as a CNR and incurring additional fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.