Does Crowne Plaza guarantee a fixed price for Company Smoothies purchased by each Hotel during the Term?

According to the 2025 Crowne Plaza FDD, the price of Company Smoothies is not guaranteed to remain fixed during the term of the agreement. The FDD states that each hotel has the right to purchase Company Smoothies at the company's "then-current published chain account prices." These prices are explicitly "subject to change from time to time."

This means that while a Crowne Plaza hotel has the option to offer Company Smoothies, the cost of those smoothies can fluctuate. This lack of a fixed price introduces a degree of uncertainty for franchisees, as it can impact their budgeting and profitability projections related to beverage sales. Franchisees need to be aware that the cost of goods for smoothies could increase, potentially affecting their profit margins.

This pricing structure is fairly common in the franchise industry, as it allows franchisors to adjust prices based on market conditions, ingredient costs, and other economic factors. However, it's crucial for prospective Crowne Plaza franchisees to factor in the potential for price changes when evaluating the financial viability of offering Company Smoothies at their locations. Franchisees should inquire about the historical frequency and magnitude of price adjustments to better understand the potential impact on their business.