What must a Crowne Plaza licensee do to notify IHG that the hotel is ready to open?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
IHG may require that such
certification be issued by a party that has not participated in the design of the fire protection and life safety systems of the Hotel;
(h) Licensee has notified IHG in writing that all requirements for construction, furnishing and opening the Hotel have been completed and the Hotel is ready to open as a Brand System Hotel;
(i) Licensee has employed a general manager and department managers and they have successfully completed IHG's training programs; and
(j) IHG has granted written approval to open and operate the Hotel as a Brand System Hotel and established the Opening Date.
If IHG establishes an Opening Date but the letter agreement provides for additional construction, upgrading, renovation, or training (the "Additional Work"), Licensee will be authorized to use the Brand System and identify the Hotel as a Brand System Hotel only for such time as Licensee is diligently completing the Additional Work.
Failure to timely complete the Additional Work is a default under this License.
IHG may review any Additional Work, and Licensee must ensure that the Hotel complies with all requirements of IHG following such review.
Licensee, its contractors and subcontractors must cooperate fully with any inspections conducted by IHG.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a licensee must provide written notification to IHG (InterContinental Hotels Group) that all construction, furnishing, and opening requirements for the hotel have been met and that the hotel is prepared to operate as a Brand System Hotel.
In addition to notifying IHG that the hotel is ready to open, the licensee must have employed a general manager and department managers who have successfully completed IHG's training programs. IHG must also grant written approval to open and operate the hotel as a Brand System Hotel and establish the Opening Date.
Even if the letter agreement includes additional construction, upgrades, renovations, or training, the licensee can still use the Brand System and identify the hotel as a Brand System Hotel as long as they diligently complete the additional work. Failure to complete this additional work in a timely manner constitutes a default under the license. IHG retains the right to review any additional work and ensure the hotel complies with all requirements following the review. The licensee, along with their contractors and subcontractors, must fully cooperate with any inspections conducted by IHG.