To whom are the Financing and Closing costs payable for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | |||
|---|---|---|---|
| AMOUNT $2,500 /standard • Fail fourth quarter = Assess $5,000/standard • Capped at $5,000 per quarter | DUE DATE | REMARKS | |
| Employee Engagement Survey | $7 to $12 per employee each year | Annually (Payable to designated third party provider) | Note 25 |
| F&B POS Support | $45.00 per workstation per month | Monthly (Payable to an approved supplier) | Note 7 |
| Comfort Letter Processing Fee | $2,500 for the preparation and processing of any mezzanine, replacement or subsequent comfort letters after the initial senior lender letter. | Upon Demand (Payable to Hol |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the Comfort Letter Processing Fee is payable to Holiday. Specifically, this fee covers the preparation and processing of any mezzanine, replacement, or subsequent comfort letters after the initial senior lender letter.
The Comfort Letter Processing Fee is $2,500 and is due upon demand. This fee is charged for each instance where a comfort letter is required beyond the initial one provided to the senior lender.
This means that if a Crowne Plaza franchisee needs additional comfort letters for financing purposes beyond the first one for the senior lender, they will incur a $2,500 fee payable to Holiday for each subsequent letter. This cost should be factored into the franchisee's financial planning when securing financing for their Crowne Plaza hotel.