What does IHG do with the equipment warranty for a Crowne Plaza hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment is manufactured by a third party and is subject to a warranty provided by that third party, and without limiting any other representations, warranties or covenants of IHG, IHG hereby assigns such warranty to Hotel or, if such warranty cannot be so assigned, IHG shall pass through the benefit of such warranties to Hotel, and otherwise cooperate with Hotel in this respect.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, IHG assigns the equipment warranty to the Hotel (franchisee). If the warranty cannot be assigned, IHG will pass through the benefits of such warranties to the Hotel and cooperate with the Hotel in this respect.
This means that while IHG requires franchisees to use IHG-approved equipment, the responsibility for the equipment's warranty ultimately falls on the franchisee. The equipment is manufactured by a third party, and the warranty is provided by that third party. IHG plays a role in ensuring the franchisee can utilize the warranty, either through direct assignment or by facilitating the process.
For a prospective Crowne Plaza franchisee, this indicates that they should carefully review the terms of the equipment warranty provided by the manufacturer. They should also understand the process for making a warranty claim and what support IHG will provide in that process. This is a fairly standard practice in franchising, where the franchisee typically deals directly with equipment vendors for warranty issues, while the franchisor provides guidance and approved vendor lists.