What does a Crowne Plaza franchisee represent and warrant regarding each card transaction?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) each Card transaction represents an obligation of the related Cardholder for the amount of the Card transaction;
(c) the amount charged for each Card transaction is not subject to any dispute, set-off or counterclaim;
(d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivered to or performed for the Cardholder entering into that Card transaction simultaneously upon your accepting and submitting that Card transaction for processing;
(e) with respect to each Card transaction, you have no knowledge or notice of any fact, circumstance, or defense which would indicate that such Card transaction is fraudulent or not authorized by the related Cardholder or which would otherwise impair the validity or collectability of that Cardholder's obligation arising from that Card transaction or relieve that Cardholder from liability with respect thereto;
(f) each Card transaction is made in accordance with these Terms and Conditions, Card Organization Rules, the Your Payments Acceptance Guide, and Applicable Law;
(g) each Sales Draft is free of any alteration not authorized by the related Cardholder;
(h) you have completed one Card transaction per sale;
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a franchisee makes several representations and warranties regarding each card transaction. These assurances cover various aspects of the transaction's validity, authorization, and compliance.
Specifically, Crowne Plaza franchisees warrant that each card transaction represents a legitimate obligation of the cardholder for the transaction amount. They also confirm that the amount charged is not subject to any dispute, set-off, or counterclaim. The amount must be exclusively for merchandise or services sold, leased, or rented by the franchisee's business, including taxes but excluding unauthorized surcharges, and that the merchandise or service was delivered simultaneously with the transaction, unless delayed delivery or advance deposits are expressly authorized.
Furthermore, the franchisee warrants that they have no knowledge of any fact, circumstance, or defense that would indicate the transaction is fraudulent, unauthorized, or would impair the validity or collectability of the cardholder's obligation. Each transaction must comply with specified terms and conditions, card organization rules, the Your Payments Acceptance Guide, and applicable laws. The franchisee also confirms that each sales draft is free of unauthorized alterations and represents only one card transaction per sale. These representations ensure the integrity and legality of card transactions processed by Crowne Plaza franchisees.