factual

Is IHG considered the employer of the Crowne Plaza licensee's employees?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

enses]** Licensee must honor existing guest contracts for guest rooms and/or meetings. If Licensee fails to honor an existing guest room contract and or meeting contract, Licensee must "walk" or relocate all impacted guests to another hotel acceptable to the guests and Licensee must pay for the entire difference in cost between the Hotel and the replacement hotel for the entire stay of the guests and/or meeting, including tax and any additional transportation and communication costs resulting from Licensee's failure to honor the existing guest contract.

I. Employees of the Hotel.

Licensee must ensure suitable, qualified individuals are employed at the Hotel in such number as is sufficient to staff all positions at the Hotel in accordance with the Standards. None of Licensee's employees will be considered to be IHG's employees. Licensee acknowledges and agrees that Licensee, or its management company engaged to operate the Hotel, as may be applicable, is the sole employer of the employees working at the Hotel and that IHG does not directly or indirectly control employment policies, discipline, recruitment or termination and that Licensee is solely responsible for all employment decisions, regardless of whether Licensee has received guidance with respect to such matters from IHG. Neither Licensee nor any of Licensee's employees whose compensation Licensee pays may in any way, directly or indirectly, expressly or by implication, be construed to be IHG's employee for any purpose, including but not limited to with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency. IHG will not have the power to hire or fire Licensee's employees. Licensee expressly agrees, and will never contend otherwise, that IHG's authority under this License to approve certain of Licensee's employees for qualification to perform certain functions for the Hotel does not directly or indirectly vest in IHG the power to hire, fire or control any such employee. Licensee further agrees that any such minimum requirements established by IHG are solely for the purpose of ensuring that the Hotel is at all times operated in accordance with the Standards and with the attributes of the Brand known to, and desired by, the consuming public and associated with the Marks. Moreover, Licensee agrees that any training provided by IHG for Licensee's employees is intended to impart to those employees, under Licensee's ultimate authority, the various procedures, protocols, systems and operations of the Hotel and in no fashion reflects any employment relationship between IHG and such employees. Finally, should it ever be asserted that IHG is the employer, joint employer or co-employer of any of Licensee's employees in any private or government investigation, action, proceeding, arbitration or other setting, Licensee irrevocably agrees to assist IHG in defending said allegation, including, if necessary, appearing at any venue requested by IHG to testify on IHG's behalf and, as may be necessary, submitting itself to depositions, other appearances and/or preparing affidavits dismissive of any allegation that IHG is the employer, joint employer or co-employer of any of Licensee's employees.

**10.

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

What This Means (2025 FDD)

According to the 2025 Crowne Plaza FDD, IHG is not considered the employer of the Crowne Plaza licensee's employees. The FDD states that the licensee, or their management company, is the sole employer of the hotel's employees. This means the licensee is responsible for all employment decisions, including policies, discipline, recruitment, and termination, regardless of any guidance received from IHG. IHG does not have the power to hire or fire the licensee's employees.

This distinction is crucial for liability and compliance purposes. The licensee is solely responsible for all mandated insurance coverage, taxes, contributions, and withholdings related to their employees. The FDD emphasizes that neither the licensee nor their employees can be construed as IHG's employees for any purpose related to these obligations. This protects IHG from potential employment-related claims and liabilities.

The FDD clarifies that IHG's authority to approve certain employees for specific functions does not give IHG control over those employees. Any minimum requirements established by IHG are solely to ensure the hotel operates according to brand standards. Furthermore, any training provided by IHG to the licensee's employees is intended to impart knowledge of hotel procedures and operations under the licensee's authority, and does not reflect an employment relationship between IHG and the employees.

The Crowne Plaza licensee also agrees to assist IHG in defending against any claims that IHG is the employer of the licensee's employees. This includes providing testimony and affidavits to dismiss any such allegations. This provision further reinforces the independent contractor relationship between the licensee and IHG, and protects IHG from potential legal challenges related to employment status.

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.