For Crowne Plaza franchises, where are the 'Hotels' that are subject to the beverage agreement located?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The term "Hotels" includes all locations owned or managed by Customer within such hotels where Beverages are or can be served other than as set forth in Exhibit E, Section 2.
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- "Customer" means the Franchisee or management company operating the Hotel for hotel owner identified on the signature page of this Agreement.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the term "Hotels" in the beverage agreement encompasses all locations that are either owned or managed by the franchisee (referred to as "Customer"). This includes any areas within these hotels where beverages are served or can be served. However, there are exceptions to this rule, which are detailed in Exhibit E, Section 2 of the agreement.
In practical terms, this means that if you operate a Crowne Plaza hotel, the beverage agreement applies to virtually all areas within the hotel where beverages are available, such as restaurants, bars, and room service. The agreement dictates the terms and conditions under which beverages can be served and sold in these locations.
It is important for prospective Crowne Plaza franchisees to carefully review Exhibit E, Section 2, to understand the specific locations within the hotel that may be exempt from the beverage agreement. This will help in accurately assessing the scope and impact of the agreement on the hotel's operations and revenue streams. Understanding these details is crucial for making informed decisions about the franchise investment and for ensuring compliance with the franchisor's requirements.