What is the fixed cost for the Openings Preopening Support Fee for a Crowne Plaza, and when is it invoiced?
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 |
|---|---|---|---|
| Openings Preopening Support Fee; to be invoiced within 60 days of license execution by Holiday (Note 6) | $8,500 | Lump sum within 30 days of invoice | SCH |
| IHG University (annual subscription) (Note 6) | 2025 annual subscription fee for Crowne Plaza is $5,500 (Prorated based on opening month). Additional travel expenses may apply | 30 days after opening | SCH |
| Market Feasibility Study | $0 to $30,000 | As required by Service Provider | Service Provider |
Source: Item 7 — Estimated Initial Investment (FDD pages 51–59)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Openings Preopening Support Fee is a fixed cost of $8,500. This fee covers support from the time the license is executed until the hotel opens, including assistance from the Hotel Lifecycle + Growth organization, which includes Franchise Openings, Plan Review, and Construction.
The $8,500 fee will be invoiced within 60 days of the license execution by Holiday. Once invoiced, the franchisee is expected to pay the fee in a lump sum within 30 days of the invoice date. This fee is paid to SCH.
It's important to note that while the Preopening Support fee is fixed, additional costs may be incurred if on-site training is required at the hotel. These additional costs can range from $1,500 to $6,000, depending on the scope of the additional learning needs for the hotel. Therefore, franchisees should budget for potential additional training expenses beyond the initial $8,500 fee.