factual

To whom are the Guest Relations Fees for a Crowne Plaza franchise payable?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

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Note 23: Guest Relations Fee: One Contact Resolution is a Guest Relations process that allows for increased guest satisfaction by empowering case managers to handle calls quickly. Your Hotel is expected to resolve any guest relations issues of a service or quality nature during the guest's stay. Post stay contacts of a service or quality nature will be resolved by Guest Relations case managers on behalf of the hotel, compensating the guest with up to one night's room fee and tax. The hotel must pay a $150 case management fee per incident as well as any applicable compensation to the guest. Hotels can earn a quarterly fee waiver on serv

Source: Item 6 — OTHER FEES (FDD pages 31–51)

What This Means (2025 FDD)

According to the 2025 Crowne Plaza FDD, the hotel must pay a $150 case management fee per incident, as well as any applicable compensation to the guest, for post-stay contacts of a service or quality nature that are resolved by Guest Relations case managers on behalf of the hotel. However, Crowne Plaza hotels can earn a quarterly fee waiver on service and quality cases by achieving a Guest Relations Index in the top third of the Brand System. Any non-service or quality issues are referred to the Hotel for resolution. The FDD does not specify to whom the Guest Relations Fees are payable.

Because the FDD does not specify to whom the Guest Relations Fees are payable, prospective Crowne Plaza franchisees should inquire directly with the franchisor to clarify the payment recipient. Understanding the exact payee is crucial for accurate financial record-keeping and ensuring proper allocation of funds. Knowing to whom the fees are payable will help in setting up the appropriate payment processes and accounting procedures.

It is also important to understand the process for the quarterly fee waiver. Franchisees should ask Crowne Plaza for details on how the Guest Relations Index is calculated and what steps they can take to achieve a top-third ranking. This information will help franchisees proactively manage guest relations and potentially reduce their expenses related to case management fees.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.