What expenses must a Crowne Plaza franchisee pay if they request an extension of the construction commencement or completion deadlines?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
You may apply for an extension of the construction commencement or completion deadlines. Holiday will consider various factors which may influence your extension request, including the ability to obtain financing or building permits, zoning and local ordinances, weather conditions, shortages or delayed installation of equipment, fixtures and signs. Holiday's approval of extension requests is not automatic. You must pay any expenses incurred by Holiday in processing the extension request.
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 69–81)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, if a franchisee applies for an extension of the construction commencement or completion deadlines, they must cover any expenses that Crowne Plaza incurs while processing the extension request.
The FDD specifies that Holiday (the licensor) will consider various factors that may influence the extension request. These factors include the franchisee's ability to obtain financing or building permits, zoning and local ordinances, weather conditions, and shortages or delayed installation of equipment, fixtures, and signs. However, approval of extension requests is not automatic.
This means that in addition to potential direct costs, a Crowne Plaza franchisee needs to factor in potential expenses charged by the franchisor for processing any extension requests. These costs are separate from the construction and remodeling costs, which are the franchisee's sole responsibility. Understanding these potential expenses is crucial for managing the overall investment and timeline for opening a Crowne Plaza franchise.