What is the late charge for overdue payments required by the lease agreement for Crowne Plaza?

According to Crowne Plaza's 2025 Franchise Disclosure Document, if amounts due under the license agreement are not paid when due, this non-payment constitutes a breach of the license. In addition to being a breach of contract, unpaid amounts will accrue interest beginning on the first day of the month following the due date. The interest rate is 1½% per month, which equates to 18% per year, or the maximum interest permitted by applicable law, whichever is less.

This means that a Crowne Plaza franchisee can expect to pay a substantial penalty for late payments. The 1.5% monthly interest charge is a significant cost that can quickly add up, especially for larger overdue amounts. Franchisees should ensure they have sufficient cash flow management to avoid these charges.

It's important to note that the interest rate could be lower if the maximum interest rate permitted by applicable law is less than 1.5% per month. Franchisees should be aware of the laws in their jurisdiction regarding maximum interest rates to understand the potential late payment charges fully. This highlights the importance of timely payments to maintain a good financial standing with Crowne Plaza and avoid unnecessary expenses.