For a Crowne Plaza franchise, what happens to the pricing after the SOW Term ends?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Effective during the time period commencing thirty (30) days after the date this Agreement is fully signed or the first day of the Term, whichever is later, and ending December 31, 2025, Bottler will charge no more than the price ceilings for the Bottler Bottle/Can Beverages identified in the table below. Price ceilings for all subsequent Years beyond what is set forth in the chart below, if any, will automatically increase 3% over the previous Year's price ceilings.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, pricing for Bottler Bottle/Can Beverages is subject to change after the initial term. Specifically, during the period starting 30 days after the agreement is fully signed or the first day of the term (whichever is later) and ending on December 31, 2025, Bottler will not charge more than the price ceilings outlined in the provided table.
For years beyond those specified in the chart, the price ceilings will automatically increase by 3% over the previous year's price ceilings. This means that a Crowne Plaza franchisee can anticipate a consistent, albeit modest, increase in the cost of these beverages each year following the initial pricing period.
This pricing structure provides some predictability for franchisees in managing their beverage costs. However, it's important to note that these are price ceilings, not fixed prices, so actual costs could be lower. Franchisees should factor in this annual increase when projecting their operating expenses and potential profitability. It would be prudent for a prospective franchisee to inquire about the specific price ceilings for the Bottler Bottle/Can Beverages and to understand how these prices compare to market rates to assess the competitiveness of the offering.