When are the Financing and Closing costs due for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|---|---|---|
| Financing and Closing | As incurred | 3rd parties | |
| (Note 2) |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the financing and closing costs are due as they are incurred. This means that franchisees will need to pay these costs throughout the process of securing financing and finalizing the purchase or construction of their Crowne Plaza hotel.
For a prospective Crowne Plaza franchisee, this implies that they should be prepared to manage these expenses as they arise, rather than expecting a single, consolidated payment. These costs are paid to third parties, not directly to the franchisor, which is typical in franchise agreements. Franchisees should budget carefully and maintain open communication with their lenders and legal advisors to understand the timing and amounts of these costs.
It's important for potential franchisees to factor these ongoing costs into their overall financial planning. Since these costs are paid to third parties, Crowne Plaza does not control the specific amounts or payment schedules. Therefore, franchisees should seek detailed estimates from their chosen financial and legal professionals to accurately project these expenses.