In the Crowne Plaza License Agreement, what information is required regarding the Licensee?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
nic funds transfer, direct account debit, ACH or other similar technology designed to accomplish the same purpose as may be designated by IHG. If IHG requires Licensee to make payments by any of the foregoing methods, Licensee agrees to make its payment in compliance with those
requirements and also to deposit and maintain at all times sufficient funds to cover all fees and payments that Licensee owes to IHG and its Affiliates in a segregated bank account that Licensee establishes and maintains for the Hotel.
Licensee will operate the Hotel so as to maximize Gross Rooms Revenue of the Hotel consistent with sound marketing and industry practice and will not engage in any conduct that reduces Gross Rooms Revenue of the Hotel in order to further other business activities. Charges may be made for optional products or services accepted by Licensee from IHG, either in accordance with current practice or as developed in the future.
Each payment under paragraph 3.B., except the Rooms Addition Fee or other fees not determined from Gross Rooms Revenue, shall be accompanied by the monthly statement referred to in paragraph 7.A. IHG may apply any amounts received under this License to any amounts due under this License. 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.
IHG has the right, in its sole judgment, to require Licensee to tender all or any part of the payments due to IHG under this License to IHG or one or more of IHG's Affiliates or other designees.
4. IHG's Responsibilities:
A. Training.
During the License Term, IHG will continue to specify and provide required and optional training services and programs at various locations and in various formats. A fee may be charged for certain required and optional training services. Travel, lodging and other expenses of Licensee and its employees will be borne by Licensee. Reasonable charges may also be assessed for training materials.
**B.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the Licensee is required to adhere to several operational and financial obligations. Specifically, the Licensee must operate the hotel to maximize Gross Rooms Revenue, consistent with sound marketing and industry practices, and must not engage in any conduct that reduces Gross Rooms Revenue to benefit other business activities.
Financially, the Licensee may be required to pay all outstanding fees via electronic funds transfer, direct account debit, ACH, or similar technology, if elected by IHG. If this is the case, the Licensee must maintain sufficient funds in a segregated bank account specifically for the Hotel to cover all fees and payments owed to IHG and its affiliates. Furthermore, the Licensee is responsible for a fee of $3.00 per room, per month for mandatory participation in the Crowne Plaza Hotel Marketing Association, which is subject to change by the association. These fees are invoiced in advance but paid in arrears along with all other invoiced fees.
In addition to these requirements, the Licensee must provide a monthly statement along with each payment under paragraph 3.B, excluding the Rooms Addition Fee or other fees not determined from Gross Rooms Revenue. IHG has the right to apply any amounts received under the License to any amounts due. Non-payment of amounts due constitutes a breach of the License, and unpaid amounts will accrue interest beginning on the first day of the month following the due date at a rate of 1½% per month or the maximum interest permitted by applicable law, whichever is less. These financial and operational stipulations ensure that the Crowne Plaza brand maintains consistent standards and revenue generation across all its licensed hotels.