What knowledge should a Crowne Plaza franchisee have regarding the validity of a card transaction?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
(b) each Card transaction represents an obligation of the related Cardholder for the amount of the Card transaction;
(c) the amount charged for each Card transaction is not subject to any dispute, set-off or counterclaim;
(d) each Card transaction amount is only for respective merchandise or services (including taxes, but without any surcharge, except as required by Card Organization Rules) sold, leased, or rented by you pursuant to your business as indicated on the Application and, except for any delayed delivery or advance deposit Card transactions expressly authorized by the Agreement, that merchandise or service was actually delivered to or performed for the Cardholder entering into that Card transaction simultaneously upon your accepting and submitting that Card transaction for processing;
(e) with respect to each Card transaction, you have no knowledge or notice of any fact, circumstance, or defense which would indicate that such Card transaction is fraudulent or not authorized by the related Cardholder or which would otherwise impair the validity or collectability of that Cardholder's obligation arising from that Card transaction or relieve that Cardholder from liability with respect thereto;
(f) each Card transaction is made in accordance with these Terms and Conditions, Card Organization Rules, the Your Payments Acceptance Guide, and Applicable Law;
(g) each Sales Draft is free of any alteration not authorized by the related Cardholder;
(h) you have completed one Card transaction per sale;
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a franchisee must understand several conditions related to the validity and handling of card transactions. Specifically, each card transaction represents an obligation of the cardholder for the transaction amount, and this amount should not be subject to any dispute, set-off, or counterclaim. The amount charged must be exclusively for the merchandise or services provided, including taxes, without any unauthorized surcharges, and the merchandise or service must be delivered simultaneously with the card transaction, unless explicitly authorized for delayed delivery or advance deposits.
A Crowne Plaza franchisee must not have any knowledge or notice of facts indicating that a card transaction is fraudulent or unauthorized. This includes awareness of any circumstances or defenses that could impair the validity or collectability of the cardholder's obligation. Each transaction must comply with specified terms and conditions, card organization rules, the Your Payments Acceptance Guide, and applicable laws. The sales draft should be free of unauthorized alterations, and each sale should involve only one card transaction.
These stipulations ensure that Crowne Plaza franchisees handle card transactions with integrity and diligence, reducing the risk of disputes, chargebacks, and potential legal issues. Compliance with these rules protects both the franchisee and the Crowne Plaza brand by maintaining secure and transparent transaction practices. Franchisees should familiarize themselves with all relevant guidelines and rules to ensure adherence and avoid any actions that could compromise the validity of card transactions.