For a Crowne Plaza franchise, what does 'Ground Break' mean in the context of hotel construction?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee must complete "Ground Break" of the Hotel by the Ground Break Due Date set forth in Attachment "A") and continuously construct and furnish the Hotel in accordance with the Final Plans and the Standards so that the Hotel opens in the Brand System by the Opening Deadline set forth in section B.9. below. "Ground Break" means the completion of the Hotel building foundation through ground-level or the completion of the finished ground floor slab.
Licensee must provide photo documentation of Ground Break to IHG within one day thereafter.
Licensee must submit for IHG's review and approval any and all signage, shop drawings, guest room FF&E and Public Area FF&E plans and associated specifications as outlined in the submittal guidelines ("FF&E Specs") to IHG, as designed and prepared by a licensed or accredited design professional with commercial building design background, no later than thirty (30) days after Ground Break.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, "Ground Break" refers to a specific stage in the hotel construction process. It signifies the completion of the hotel building's foundation up to ground level or the completion of the finished ground floor slab.
For a prospective Crowne Plaza franchisee, this definition is important because it marks a critical milestone in the construction timeline. The franchisee must complete this "Ground Break" by the date specified in Attachment A of the franchise agreement. Furthermore, the franchisee is obligated to continuously construct and furnish the hotel according to the approved Final Plans and Standards to ensure the hotel opens by the deadline outlined in section B.9.
The FDD also stipulates that the franchisee must provide photo documentation of the Ground Break to IHG (InterContinental Hotels Group) within one day of completion. Additionally, within 30 days after the Ground Break, the franchisee needs to submit signage, shop drawings, guest room FF&E (furniture, fixtures, and equipment), and Public Area FF&E plans and specifications to IHG for review and approval. These submissions must be designed and prepared by a licensed or accredited design professional with a commercial building design background.
Therefore, understanding the definition of "Ground Break" is crucial for Crowne Plaza franchisees to adhere to the construction schedule, meet reporting requirements, and proceed with subsequent phases of the hotel development in compliance with IHG's standards and guidelines.