How is the early termination fee for the NGP program calculated for a Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon activation of the NGP program at your Hotel, you will enter into a Next-Gen Payment Agreement with SCH (See Exhibit G-4). SCH will immediately bill you monthly and administer support for the hardware and software. All Hotels are required to use NGP or such successor payments program as may be implemented by SCH. Pursuant to the terms of the Next-Gen Payment Agreement, licensee will be liable for payment to IHG of an early termination fee for any reason equal to (x) 50% of the NGP monthly fee, multiplied by (y) the remaining monthly payments in the term.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, participation in the Next-Gen Payment (NGP) program is mandatory for all hotels. Upon activating the NGP program, franchisees must sign a Next-Gen Payment Agreement with SCH.
The early termination fee for the NGP program is calculated based on a formula. If a Crowne Plaza franchisee terminates the Next-Gen Payment Agreement early for any reason, they are liable to pay IHG an early termination fee. This fee is equal to 50% of the NGP monthly fee, multiplied by the number of remaining monthly payments in the term.
In practical terms, this means that if a franchisee decides to discontinue the NGP program before the end of the agreed term, they will be required to pay a significant portion of the remaining fees. For example, if the monthly NGP fee is $100 and there are 12 months remaining in the term, the early termination fee would be 50% of $100 (which is $50) multiplied by 12, totaling $600. Franchisees should carefully consider the implications of this early termination fee before entering into the Next-Gen Payment Agreement.