What late payment fees might a Crowne Plaza franchisee incur?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
If any amounts under this License are not paid when due, such non-payment shall constitute a breach of this License and, in addition, such unpaid amounts will accrue interest beginning on the first day of the month following the due date at 1½% per month or the maximum interest permitted by applicable law, whichever is less.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, if a franchisee fails to make payments on time, it constitutes a breach of the License Agreement. In addition to this breach, the unpaid amounts will accrue interest. This interest begins accruing on the first day of the month following the date the payment was due.
The interest rate applied to these late payments is 1½% per month. However, if applicable law sets a maximum interest rate that is lower than 1½% per month, the maximum interest rate permitted by law will be used instead.
For a prospective Crowne Plaza franchisee, this means that managing cash flow and ensuring timely payments is crucial to avoid incurring these interest charges. Franchisees should be aware of the due dates for all fees and plan accordingly to prevent late payments and the resulting financial penalties. It is also important to understand the applicable laws regarding maximum interest rates in their specific jurisdiction, as this could affect the amount of interest charged on overdue amounts.