factual

For a Crowne Plaza hotel, who is responsible for procuring and maintaining the hardware, software, and data communication required to connect to the System?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

PIM Compliance: Hotel shall be responsible for procuring and maintaining, at its sole cost, all hardware, software and data communication and connectivity required to connect to the FreedomPay system and services (the "FreedomPay Solution").

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisee (referred to as "Hotel" or "Licensee") is generally responsible for procuring and maintaining the necessary hardware, software, and data communication systems needed to connect to various systems, including the FreedomPay system. Specifically, the franchisee is responsible for these costs associated with the FreedomPay Solution. This includes ensuring compliance with the FreedomPay P2PE Instruction Manual (PIM). Failure to comply with PIM can result in IHG stepping in to mitigate the non-compliance, with the franchisee bearing the costs.

This requirement extends to other technology-related aspects of the hotel's operation. For instance, at least 120 days before the hotel opening, the franchisee must acquire the hardware, software, and communication capabilities specified in the Minimum Configuration. The franchisee is also responsible for site preparation for hardware installation, including providing necessary electrical connections, power, outlets, air conditioning, and network cabling. If site preparation is not completed to IHG's satisfaction, the franchisee may be charged $2,600 (which may be modified by IHG from time to time).

IHG may install a wide area network (WAN) and WAN hardware for the hotel's communication with IHG's systems. While IHG determines the optimal access method, the franchisee is required to purchase broadband internet access to establish the primary WAN link. The franchisee does not acquire any ownership interest in the WAN hardware and must allow IHG or its agents access to the hotel property for installation, maintenance, and removal of the WAN hardware. Upon termination of the license, the franchisee is responsible for the de-installation costs of the WAN hardware.

In summary, while IHG provides certain technology solutions and standards, the financial responsibility for procuring, installing, and maintaining much of the hardware, software, and communication systems falls on the Crowne Plaza franchisee. This includes costs related to the PMS, NextGen Payments, FastConnect SD-WAN, IHG Connect, and WAN hardware, as well as ensuring compliance with specified standards and agreements.

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.