For a Crowne Plaza franchise, who is responsible for chargebacks and adjustments associated with submitted transactions?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisee is responsible for chargebacks and adjustments associated with the transactions that they submit for processing. This means that if a customer disputes a charge and the chargeback is deemed valid, the franchisee will be the one to bear the financial loss.

Crowne Plaza franchisees should be aware that even if they have provided goods or services and are legally entitled to payment, a customer may still be able to successfully chargeback a card transaction. In such cases, neither the franchisor nor the issuer will be responsible for the transaction, and the franchisee will have to pursue claims directly against the customer. This highlights the importance of implementing robust fraud prevention measures and maintaining excellent customer service to minimize the risk of chargebacks.

Furthermore, if a Crowne Plaza franchisee's chargeback percentage exceeds the estimated industry chargeback percentage for any line of business, the franchisee will be required to pay an excessive chargeback fee for all chargebacks occurring in that month for that line of business, in addition to the chargeback fees and any applicable chargeback handling fees or fines. The estimated industry chargeback percentage is subject to change by Crowne Plaza to reflect changes reported by Visa, Mastercard, or Discover. Franchisees should carefully monitor their chargeback rates and take proactive steps to address any issues that may be contributing to high chargeback volumes.