Are the initial fees paid to Holiday for a Crowne Plaza franchise refundable?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Y**
No bankruptcy is required to be disclosed in this Item.
ITEM 5 INITIAL FEES
All fees are fully earned when received and are not refundable, except as stated otherwise below. The Initial Fees described in this Item 5 reflect the current standard initial fees and while usually applied uniformly, Holiday may elect to reduce a fee after considering criteria, including the number of hotels in the Brand System operated by a licensee or the market position of the hotel. In limited circumstances, Holiday may negotiate or waive some of the Initial Fees described here, but Holiday is not obligated to do so.
APPLICATION FEE:
When you submit an application for a Brand System License – whether for a new development, conversion, change of ownership or re-licensing – you must pay Holiday an initial application fee (the "Application Fee") of $500 per guest room, but not less than $75,000.
If Holiday does not approve your application for a License, or if you withdraw the application before Holiday approves or denies it, Holiday will return the Application Fee to you, less $15,000 to cover costs for evaluating your application. If Holiday approves the application subject to certain requirements, Holiday may revoke its approval if you fail to meet those requirements. Once Holiday approves the application (even if Holiday subsequently revokes its approval), the Application Fee is nonrefundable. If you and Holiday agree to add any guest rooms to the Hotel, then you must pay to Holiday a nonrefundable Room Addition Fee of $500 for each new approved guest room.
See Item 6 for information relating to the requirements and fees for changes of owner
Source: Item 5 — INITIAL FEES (FDD pages 27–31)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, initial fees paid to Holiday are generally non-refundable. The FDD states that all initial fees are payable in full before the hotel opens, and are fully earned when paid. Therefore, these fees are not refundable under any circumstances, unless specifically noted otherwise.
However, there is an exception regarding the application fee. The initial application fee is $500 per guest room, but not less than $75,000. If Holiday does not approve the application for a license, or if the applicant withdraws the application before approval or denial, Holiday will return the application fee, less $15,000 to cover the costs of evaluating the application. Once Holiday approves the application, even if approval is later revoked, the application fee becomes nonrefundable. Additionally, a nonrefundable Room Addition Fee of $500 for each new approved guest room is required if the franchisee and Holiday agree to add guest rooms to the hotel.
In summary, while most initial fees for a Crowne Plaza franchise are non-refundable, the application fee has a conditional refund policy if the application is withdrawn or not approved, less a $15,000 deduction. Franchisees should be aware of these conditions and consider them carefully before submitting an application and paying any fees.