factual

Can IHG increase the transaction fee for Crowne Plaza hotels?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

IHG reserves the right to lower (but not to increase) this transaction fee upon notice to Hotel.

In addition, Hotel will pay IHG a support fee of $140 per month.

IHG may modify this support fee by no more than 10% annually upon notice to Hotel.

Hotel will pay IHG a fee of $0.06 per transaction, where "transaction" means each of (i) an on-line authorization request, (ii) a captured request that does not have a corresponding on-line authorization (examples include verbal authorizations, below floor limit or offline requests), (iii) a return request, and (vi) a void request.

For most transactions, this fee will be collected by the merchant service provider as part of the settlement reconciliation.

IHG reserves the right to lower (but not to increase) this transaction fee upon notice to Hotel.

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

What This Means (2025 FDD)

According to the 2025 Crowne Plaza Franchise Disclosure Document, IHG (InterContinental Hotels Group) has the right to lower, but not increase, the NGP transaction fee upon notice to the hotel. This fee is associated with the Next-Gen Payments Solution. Additionally, for each transaction, the hotel will pay IHG a fee of $0.06. A transaction is defined as each of the following: an on-line authorization request, a captured request that does not have a corresponding on-line authorization, a return request, and a void request.

This policy is favorable for franchisees because it protects them from unexpected increases in transaction fees. The $0.06 per transaction fee is collected by the merchant service provider as part of the settlement reconciliation for most transactions. This fee structure impacts the franchisee's operational costs, particularly concerning payment processing.

In addition to the transaction fee, the franchisee will also pay IHG a support fee of $140 per month. IHG may modify this support fee, but by no more than 10% annually, upon notice to the hotel. This provides some predictability in terms of the support fee expenses for the Crowne Plaza franchisee. The support fee and transaction fee terms are part of the Participation Agreement between the hotel, IHG, and FreedomPay, which outlines the responsibilities and relationships between the parties involved in the Secure Payment Solution services.

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.