Is a Crowne Plaza franchisee entitled to interest on funds held in the Reserve Account?

According to the 2025 FDD, a Crowne Plaza franchisee is generally not entitled to interest on funds held in the Reserve Account. The FDD states that unless specifically required by law, the franchisee will not receive interest on any funds held by the franchisor in a Reserve Account.

This means that Crowne Plaza will hold the funds in master accounts, allocating the franchisee's funds to separate sub-accounts, but the franchisee should not expect to earn any interest income on these funds. The funds are held to cover potential Servicers Fees, Third Party Based Fees, Chargebacks, and other amounts arising in connection with the franchise agreement.

This policy is fairly common in franchising, as reserve accounts are primarily for the protection of the franchisor against potential liabilities or unpaid fees. Franchisees should be aware of this policy and factor it into their financial planning, as the funds held in reserve will not generate any additional income for them.