What fees collected from a Crowne Plaza franchisee might be remitted to the Group Owner?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (e) Remitting Fees to Group Owner. Depending on our and your relationship with the Group Owner, certain fees that are assessed and collected pursuant to the Agreement may be assessed and collected on behalf of the Group Owner and remitted to the Group Owner.
You authorize us to assess, collect, and remit to the Group Owner such fees.
You consent to our providing you the Services in accordance with the Group Owner Instructions and you waive all claims you may have against us, and related losses, arising from our following the Group Owner Instructions.
- (f) Waiver of Liability. We are not responsible for determining whether you are a Group Member.
We shall not have any liability to you in connection with any of our acts and omissions under this Section 2.6, regardless of whether you are or are not a Group Member.
You waive all claims, suits, and causes of action against us, and all related losses, related to our acts and omissions under this Section 2.6.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, certain fees collected from franchisees may be remitted to a "Group Owner," depending on the relationship between Crowne Plaza, the franchisee, and the Group Owner. Crowne Plaza is authorized to assess, collect, and remit these fees to the Group Owner on their behalf.
The franchisee consents to Crowne Plaza providing services in accordance with the Group Owner's instructions and waives any claims against Crowne Plaza arising from following those instructions. Crowne Plaza explicitly states it is not responsible for determining whether a franchisee is a Group Member and disclaims any liability related to its actions under this section of the agreement, regardless of the franchisee's Group Member status.
This arrangement means that a portion of the fees a Crowne Plaza franchisee pays might not be retained by the franchisor but instead passed on to a third party. The franchisee's obligations to the Group Owner are dictated by the Group Owner's instructions, and the franchisee bears the risk of complying with these instructions. Prospective franchisees should seek clarity from Crowne Plaza regarding the specific fees that may be remitted to a Group Owner, the circumstances under which this occurs, and the nature of the relationship between Crowne Plaza, the franchisee, and any relevant Group Owner.