What is the franchisor's obligation to Crowne Plaza franchisees regarding chargeback disputes?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 7.2 Disputing Chargebacks. You may dispute a Chargeback as provided in the Card Organization Rules, including any requirements for timely submission.
Our obligation to you respecting Chargeback disputes is limited to presenting your dispute to the appropriate Card Organization, to the limited extent required by Card Organization Rules.
We will not engage in direct collection efforts against Cardholders on your behalf.
The Your Payments Acceptance Guide contains additional details and requirements related to Chargebacks.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisor's obligation regarding chargeback disputes is limited. Specifically, Crowne Plaza franchisees are responsible for reimbursing the franchisor for all transactions that are charged back. This includes the chargeback itself, any related fees, fines, penalties, assessments, and other amounts related to disputing or arbitrating the chargeback. This also includes fees for failing to produce records within the required time limits, regardless of whether the chargeback is settled in the franchisee's favor.
Crowne Plaza franchisees do have the right to dispute a chargeback as provided in the Card Organization Rules, including requirements for timely submission. However, the franchisor's obligation to the franchisee is limited to presenting the dispute to the appropriate Card Organization, but only to the extent required by Card Organization Rules.
It is important to note that Crowne Plaza will not engage in direct collection efforts against cardholders on behalf of the franchisee. The FDD also mentions that the Your Payments Acceptance Guide contains additional details and requirements related to chargebacks, which franchisees should consult for further information.