For a Crowne Plaza franchise, what is the prohibited action regarding the application and application fee after receiving the Franchise Disclosure Document?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
eipt by an authorized signer for the Applicant (see below). | | Complete the Application (please type or print) and have the authorized signer(s) for the Applicant sign and date the | | Application Letter. | | Attach the supporting documents and information requested in the Application and summarized on the attached checklist, and | | submit the entire package along with the Application Fee described below. | | |
NOTE: The Applicant should not sign or submit the Application or payment of the Application fee until at least the fourteenth (14th) day after the date the receipt of the Franchise Disclosure Document was signed and dated.
Authorized Signers
Authorized signers for the Receipt and Application Letter include the following:
Applicant Signer(s)
Individual(s): Each individual
&RUSRUDWLRQ 3UHVLGHQW9LFH3UHVLGHQWRURWKHU$XWKRUL]HG2I¿FHU General Partnership: Each General Partner or Authorized General Partner Limited Partnership: Each General Partner or Authorized General Partner
Limited Liability Company: Managing Member(s), Authorized Member(s), or Manager(
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a prospective franchisee should not sign or submit the application or payment of the application fee until at least the fourteenth day after the date the receipt of the Franchise Disclosure Document was signed and dated. This 14-day period allows the applicant to thoroughly review the FDD and seek professional advice before making any financial commitments or signing any binding agreements. This regulation is in place to protect potential franchisees from feeling pressured into making hasty decisions.
This waiting period is a standard practice in the franchise industry, mandated by the Federal Trade Commission (FTC) and various state laws to ensure that franchisees have adequate time to evaluate the opportunity. The Crowne Plaza franchise adheres to this regulation, emphasizing the importance of informed decision-making. The FDD also specifies who the authorized signers are for the receipt and application letter, including individuals, corporations, general partnerships, limited partnerships, limited liability companies, trusts, and estates, ensuring clarity on who is authorized to represent the applicant.
Furthermore, the FDD clarifies that payment of the application fee must be made when the application is submitted, and this fee becomes non-refundable upon IHG's approval of the application. This highlights the importance of carefully considering the franchise opportunity before submitting the application and paying the fee, as the fee is non-refundable once IHG approves the application. This policy is typical in franchising, as the franchisor incurs costs in reviewing and processing applications.