Can a Crowne Plaza franchisee charge an amount for a card transaction that is subject to a dispute?

According to the 2025 Crowne Plaza FDD, a franchisee cannot charge an amount for a card transaction that is subject to a dispute. The FDD states that each card transaction represents a valid obligation for the amount shown and that the amount charged for each card transaction is not subject to any dispute, set-off, or counterclaim. This means that when a Crowne Plaza franchisee processes a card transaction, they are confirming that the cardholder is obligated to pay that specific amount without any existing disputes.

This requirement protects both the cardholder and the payment processing system. By ensuring that transactions are free from disputes at the point of sale, Crowne Plaza aims to maintain the integrity of its payment processes and avoid potential chargebacks or financial complications. This also aligns with standard practices in the franchise industry, where clear and undisputed transactions are essential for smooth operations and customer satisfaction.

If a dispute arises after the transaction, the FDD outlines specific procedures for handling chargebacks. The franchisee is responsible for reimbursing all transactions that are charged back, including fees and penalties associated with disputing the chargeback. However, the franchisee can dispute the chargeback according to the Card Organization Rules. Crowne Plaza's obligation is limited to presenting the franchisee's dispute to the appropriate Card Organization to the extent required by the Card Organization Rules. This process ensures that disputes are addressed through established channels while initially preventing disputed amounts from being charged.