What fees may Crowne Plaza charge a franchisee for AVS (Address Verification Service) requests?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
We may charge you an AVS fee for any AVS request you submit, even if we are not able to provide a response to the request.
You are responsible for all Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts arising from fraudulent activity processed through your Merchant Systems and/or your Merchant Account (regardless of any AVS response that you receive).
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, Crowne Plaza may charge franchisees an AVS fee for each Address Verification Service (AVS) request submitted, regardless of whether a response is provided.
The FDD highlights that using AVS for Card Not Present Transactions can help identify potentially fraudulent transactions and potentially lower Card Organization interchange rates. However, it's important to note that AVS does not guarantee a transaction's validity, and the AVS response does not determine whether an authorization request is approved or denied.
Furthermore, the franchisee remains responsible for all Chargebacks, Third Party Based Fees, Servicers Fees, and other amounts resulting from fraudulent activity processed through their Merchant Systems and/or Merchant Account, irrespective of the AVS response received. This means that even if an AVS check is performed, the franchisee bears the financial risk associated with fraudulent transactions.