Who must a Crowne Plaza franchisee purchase the NGP solution equipment from?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
initial time of procurement. Food, lodging and transportation expenses of your employees and/or Holiday employees and contractors are also not included and can range from $500 to $2,500 per person.
NGP Solution: The estimated cost of the NGP solution assumes you purchase the equipment from or through SCH and includes the cost of the basic equipment, installation and configuration; training in the use of the payment program devices and software, and expenses for travel, meals and lodging. Hardware warranties are purchased at the initial time of procurement.
Guest Internet Access: The Guest Internet Access ("GIA") Hardware and Bandwidth ("IHG Connect") estimates for infrastructure needs can vary greatly by location and building type.
Source: Item 7 — Estimated Initial Investment (FDD pages 51–59)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the estimated cost for the NGP (Next Generation Payments) solution assumes that franchisees purchase the equipment from or through SCH (presumably, the franchisor or an affiliated entity). This cost includes the basic equipment, its installation and configuration, training on the payment program devices and software, and expenses for travel, meals, and lodging related to the training. Hardware warranties are purchased at the initial time of procurement.
For a 250-room Crowne Plaza hotel, the estimated initial investment for PMS (Property Management System) equipment, software, installation, training, IHG Concerto™ equipment and training, NGP equipment, software, installation, and training ranges from $126,000 to $158,000. Payment is required in cash or via a commitment letter from an SCH-approved leasing or financing company before installation. The payment is made to SCH, its affiliates, or third parties.
This arrangement means that franchisees may have limited options regarding where they source this critical technology. While purchasing through SCH might offer integrated solutions and support, it could also potentially limit the franchisee's ability to shop around for competitive pricing or alternative systems. Prospective franchisees should clarify with Crowne Plaza whether there are any approved alternative vendors and carefully evaluate the terms and conditions of the NGP solution provided by SCH.