Will a Crowne Plaza franchisee receive an exclusive territory?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
In special circumstances, when in Holiday's judgment, special considerations warrant, Holiday may grant exclusive or protected areas in which another Crowne Plaza brand group Hotel will not be licensed; however, in such cases the License will still be for a specific site only and for the license of one Hotel only.
Holiday and its affiliates licenses numerous hotel brands – see Item 1. Holiday and its affiliates may license other hotel brands in the future. There may currently be licensed, company-owned hotels or company-managed hotels operating under the IHG Portfolio Brands situated in or near your area. Holiday and its affiliates may establish new licensed, company-owned or company-managed hotels operating under the IHG Portfolio Brands in or near your area. You may compete with any other hotels operating under Holiday's brands in or near your area. Hotels operating under the IHG Portfolio Brands (including the same brand as your Hotel) may solicit reservations from customers in your area for which you will receive no compensation.
Holiday uses the same principal business address for its operation of all its hotel brands and Holiday does not maintain physically separate offices for its various brands. Holiday does offer some physically separate training facilities for some of its hotel brands. There is no mechanism for resolving any conflicts that may arise between your Hotel and other licensed, company-owned hotels or company-managed hotels operating under Holiday's brands. Any resolution of conflicts regarding location, customers, support or services will be entirely within the business judgment of Holiday and its affiliates.
Holiday and its affiliates licenses numerous hotel brands – see Item 1. Holiday and its affiliates may license other hotel brands in the future. There may currently be licensed, company-owned hotels or company-managed hotels operating under the IHG Portfolio Brands situated in or near your area. Holiday and its affiliates may establish new licensed, company-owned or company-managed hotels operating under the IHG Portfolio Brands in or near your area. You may compete with any other hotels operating under Holiday's brands in or near your area. Hotels operating under the IHG Portfolio Brands (including the same brand as your Hotel) may solicit reservations from customers in your area for which you will receive no compensation.
Source: Item 12 — Territory (FDD pages 81–82)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, franchisees typically do not receive an exclusive territory. The FDD states that Holiday, the licensor, may grant exclusive or protected areas under special circumstances, but this is not the norm. Even if an exclusive territory is granted, it applies only to a specific site and for the operation of one Crowne Plaza hotel.
Crowne Plaza franchisees should be aware that they may face competition from other hotels operating under brands within the IHG Portfolio, which includes Crowne Plaza. These other IHG-branded hotels can be company-owned, company-managed, or licensed. The document explicitly states that Holiday and its affiliates may establish new hotels operating under IHG Portfolio Brands near a franchisee's location, increasing the potential for competition.
Furthermore, hotels within the IHG Portfolio, even those of the same brand as the franchisee's Crowne Plaza, can solicit reservations from customers within the franchisee's area without providing any compensation to the franchisee. This lack of territorial protection means that a Crowne Plaza franchisee's success is highly dependent on their ability to compete effectively within their local market against other hotels, including those affiliated with IHG.
Any conflicts that may arise between a franchisee's Crowne Plaza hotel and other hotels licensed or managed by Holiday will be resolved at Holiday's discretion. There is no formal mechanism for resolving such conflicts, and Holiday's business judgment will be the deciding factor. This highlights the importance of thorough market research and a comprehensive business plan for prospective franchisees to mitigate the risks associated with potential competition from other IHG-affiliated hotels.