For a Crowne Plaza franchise, is the franchisee required to personally participate in the direct operation of the hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Whether you are an individual, corporation, partnership or other entity, Holiday requires you to retain and exercise direct management control over the Hotel's business at all times unless otherwise approved by Holiday. However, Holiday does not require that you participate personally in the direct operation of the Hotel. Holiday may include conditions in your License requiring you to hire a duly qualified and experienced (i) management company acceptable to Holiday or (ii) General Manager, Director of Sales, and/or Food & Beverage ("F&B") Director with at least two years' prior experience in such position at a hotel operated under any of Holiday's upscale brands or at a hotel in a similar brand segment as the Hotel, as defined by Smith Travel Research, Inc. Regardless of whether you or a third party management company operate your Hotel, the General Manager and Director of Sales with hospitality business experience employed by you or your management company must each work exclusively for your Hotel at all times, and if you own more than one Hotel, you must hire a separate, qualified General Manager for each Hotel. You must obtain Holiday's written consent before entering into any lease, management agreement, or other similar arrangement with any entity for the operation of the Hotel or any part of the Hotel (including the food and/or beverage service).
You may hire a General Manager and all other staff members and/or employees of your own choice without Holiday's advance approval; provided, however, that your License may require a specified level of experience for such individuals. The General Manager and certain other department heads must attend Holiday's training program (see Item 11 of this disclosure document).
Source: Item 15 — Obligation to Participate in the Actual Operation of the Franchise Business (FDD pages 85–87)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, franchisees are not required to personally participate in the direct operation of the hotel. However, Crowne Plaza (referred to as Holiday in the document) mandates that franchisees retain and exercise direct management control over the hotel's business at all times, unless Holiday approves otherwise. This means that while you don't have to be there day-to-day, you are responsible for how the business is run.
Crowne Plaza may require franchisees to hire a qualified management company or specific personnel, such as a General Manager, Director of Sales, and/or Food & Beverage (F&B) Director, with at least two years of prior experience at a comparable hotel. These stipulations, if imposed, will be outlined in the License Agreement. Even if a third-party management company is in charge, the General Manager and Director of Sales must work exclusively for the franchisee's Crowne Plaza hotel. If a franchisee owns multiple hotels, a separate qualified General Manager is required for each location.
Franchisees have the autonomy to hire a General Manager and other staff members without advance approval from Crowne Plaza, although the License may specify required experience levels. Certain department heads, including the General Manager, must attend Crowne Plaza's training program. Ultimately, even with a management company or hired personnel, the franchisee remains responsible and liable to Crowne Plaza under the terms of the License and related agreements.