Is a Crowne Plaza franchisee allowed to use any part of the hotel to promote a competing business?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must provide the Hotel services described in Attachment A to your License and must ensure that no part of the Hotel or the Brand System is used to facilitate or promote a competing business. There are no restrictions as to the customers to whom you may sell guest rooms or other goods or services that are related to your Hotel business.
Source: Item 16 — Restrictions on What the Franchisee May Sell (FDD page 87)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, franchisees are explicitly prohibited from using any part of the hotel or the Brand System to promote a competing business. This restriction is in place to protect the integrity and reputation of the Crowne Plaza brand.
This means a franchisee cannot allow a competing hotel chain to advertise within the Crowne Plaza hotel premises, nor can they use Crowne Plaza's resources or systems to benefit a competing business. This restriction ensures that the franchisee's efforts are solely focused on promoting and maintaining the Crowne Plaza brand's standards and services.
The FDD does state that there are no restrictions regarding to whom the franchisee may sell guest rooms or other related goods and services. This clarifies that the restriction focuses on preventing the promotion of competing businesses within the Crowne Plaza hotel and does not limit the franchisee's ability to serve any particular customer base.