What must Crowne Plaza hotels with existing bandwidth contracts do?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
For Guest Internet Access ("GIA") Bandwidth (IHG Connect), a Hotel will be required to utilize an approved SCH-certified provider and enter into a participation agreement with an approved provider (see Item 8 and the form of agreement attached as Exhibit G-5 to this disclosure document). Monthly service fees will vary based on regional telecommunication or cable company sources. Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit. If the contract term will extend more than one year after the effective date of the respective Standard, and the Hotel has a right to terminate for convenience (without cause) and without payment of any fees, then the Hotel must exercise that right so that the contract terminates within that year. If a Hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is still in effect, the licensee shall be liable for payments to IHG of an early termination fee equal to (X) the number of months remaining on the term of the IHG Connect Participation Agreement multiplied by (Y) the monthly fees due under the IHG Connect Participation Agreement. Such payment is due within 30 days following the termination date and all equipment must be returned to the vendor within 30 days of circuit disconnection or the hotel will be subject to hardware costs. It is recommended that all Participation Agreement are renewed on or before the expiration of the Participation Agreement to avoid any disruption in service or unexpected price increases. Price increases are determined by the provider. All vendor equipment must be returned to the vendor within 30 days of the circuit disconnection or the Hotel will be subject to fees covering the cost of such hardware (i.e., Managed Router, NIDS, etc.).
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, hotels with existing bandwidth contracts for Guest Internet Access (GIA) must allow those contracts to expire or terminate according to their existing terms. They are not allowed to renew these contracts, and must provide appropriate notice as soon as the contract terms permit.
If a contract extends more than one year past the effective date of the relevant standard, and the hotel has the right to terminate it for convenience (without cause) and without incurring fees, the hotel must exercise that right. This ensures the contract terminates within that one-year timeframe.
If a Crowne Plaza hotel leaves the IHG Brand System while its IHG Connect Participation Agreement is still active, the licensee is liable for an early termination fee. This fee is calculated by multiplying the number of months remaining on the agreement by the monthly fees due under the IHG Connect Participation Agreement. Payment is due within 30 days of termination, and all equipment must be returned to the vendor within 30 days of circuit disconnection to avoid hardware costs. It is recommended that all Participation Agreements are renewed on or before the expiration of the Participation Agreement to avoid any disruption in service or unexpected price increases.