What are Crowne Plaza franchisees required to pay and reimburse the franchisor for?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Co-op programs attributable to the Hotel, and all fees due in connection with mandatory marketing, technology, guest satisfaction, quality assurance, training, new hotel opening and other systems and programs established by IHG or its Affiliates relating to the Brand System; and an amount equal to any sales, trademark license, gross receipts or similar tax imposed on IHG and calculated solely on payments required hereunder, unless the tax is an optional alternative to an income tax otherwise payable by IHG.
Local and regional marketing programs and related activities may be conducted by Licensee, but only at Licensee's expense and subject to IHG's requirements and the Standards. Reasonable charges may be made for optional advertising materials ordered or supplied by IHG to Licensee for such programs and activities.
(7) Crowne Plaza Hotel Marketing Association. A fee in an amount equal to $3.00 per room, per month for mandatory participation in the Crowne Plaza Hotel Marketing Association. This amount is subject to change from time to time by the Crowne Plaza Hotel Marketing Association. Said fees shall be invoiced in advance, but paid in arrears along with all invoiced fees.
C. Additional Payment Terms.
IHG may, at its election at any time during the License Term, require Licensee to pay all outstanding fees by electronic funds transfer, direct account debit, ACH or other similar technology designed to accomplish the same purpose as may be designated by IHG. If IHG requires Licensee to make payments by any of the foregoing methods, Licensee agrees to make its payment in compliance with those
requirements and also to deposit and maintain at all times sufficient funds to cover all fees and payments that Licensee owes to IHG and its Affiliates in a segregated bank account that Licensee establishes and maintains for the Hotel.
Licensee will operate the Hotel so as to maximize Gross Rooms Revenue of the Hotel consistent with sound marketing and industry practice and will not engage in any conduct that reduces Gross Rooms Revenue of the Hotel in order to further other business activities. Charges may be made for optional products or services accepted by Licensee from IHG, either in accordance with current practice or as developed in the future.
Each payment under paragraph 3.B., except the Rooms Addition Fee or other fees not determined from G
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, franchisees are required to participate in the Crowne Plaza Hotel Marketing Association, which involves a fee of $3.00 per room per month. This fee is subject to change by the Marketing Association. These fees are invoiced in advance but paid in arrears along with all other invoiced fees.
Crowne Plaza may require franchisees to pay all outstanding fees via electronic funds transfer, direct account debit, ACH, or similar technology. If this is the case, franchisees must maintain sufficient funds in a segregated bank account specifically for the hotel to cover all fees owed to IHG and its affiliates.
Franchisees may also incur charges for optional advertising materials or other products and services ordered from IHG for local and regional marketing programs. Interest will accrue on any amounts not paid when due, beginning on the first day of the month following the due date, at a rate of 1½% per month, or the maximum interest permitted by applicable law, whichever is less.