What is the early termination fee based on for the Next-Gen Payment Agreement at a Crowne Plaza?

According to the 2025 Crowne Plaza Franchise Disclosure Document, if a licensee terminates the Next-Gen Payment Agreement early for any reason, they are liable to pay an early termination fee to IHG. This fee is calculated by multiplying 50% of the NGP monthly fee by the number of remaining monthly payments in the agreement's term.

In simpler terms, if a Crowne Plaza franchisee decides to end the Next-Gen Payment Agreement before it expires, they will have to pay a penalty. This penalty is equal to half of their regular monthly fee for the Next-Gen Payment program, multiplied by the number of months left on the agreement. For example, if the monthly fee is $100 and there are 10 months remaining, the early termination fee would be 50% of $100 (which is $50) multiplied by 10, totaling $500.

This type of early termination fee is fairly standard in franchise agreements for services and technology. It is designed to compensate the service provider (in this case, SCH) for the loss of anticipated revenue and any upfront investments they may have made to set up the service for the Crowne Plaza hotel. Franchisees should carefully consider the length and terms of such agreements before signing to avoid potential early termination fees.