What is the Crowne Plaza franchisee's obligation regarding the delivery of merchandise or services related to a 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;
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, when a franchisee accepts a card transaction, they are confirming several obligations. The franchisee is confirming that the card transaction represents an obligation of the cardholder for the transaction amount. They are also confirming that the amount charged is not subject to any dispute, set-off, or counterclaim.
Furthermore, Crowne Plaza franchisees must ensure that the card transaction amount is exclusively for merchandise or services that they have sold, leased, or rented through their business, as indicated in their application. Unless explicitly authorized for delayed delivery or advance deposit transactions, the merchandise or service must be delivered to or performed for the cardholder simultaneously with the acceptance and submission of the card transaction for processing.
In essence, Crowne Plaza franchisees must ensure that card transactions are legitimate, authorized, and directly tied to the provision of goods or services at the time of the transaction. This protects both the cardholder and the integrity of the payment system. Franchisees must also stay up-to-date with any changes to card organization rules and maintain compliance.