Is Crowne Plaza liable for delays in receiving funds caused by the franchisee or a third party?

According to the 2025 Crowne Plaza Franchise Disclosure Document, Crowne Plaza is not liable for delays in receiving funds or errors in debit and credit entries if these issues are caused by the franchisee or any third party. This includes delays in settlement funding for card transactions from a card organization.

This means that if a Crowne Plaza franchisee experiences delays in receiving payments due to their own actions or the actions of a third party (such as a bank or payment processor), Crowne Plaza will not be held responsible for covering any losses or damages resulting from the delay. The franchisee bears the risk of these delays and must ensure they have systems in place to minimize such occurrences.

However, if the funding delay is due to reasons other than those caused by the franchisee or a third party, Crowne Plaza's sole liability is to pay interest on the delayed amount. This interest is calculated from the date the transaction should have been funded to the date it is actually funded, at a rate equal to the lesser of the bank's current prime rate plus 2% per annum (based on a 360-day year) or the maximum legal rate. This provision offers some limited protection to the franchisee in cases where the delay is attributable to Crowne Plaza's actions, but it excludes any other form of compensation for losses incurred due to the delay.