Is a Crowne Plaza licensee obligated to purchase the 'Additional Required Services'?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
3.2 Additional Required Services. IHG or an Affiliate of IHG has entered into Enabling Agreements with Service Providers approved by IHG to provide certain Hardware, Software, and Services that are mandatory components of Licensee's technology configuration required to operate the Hotel in the Brand System ("Additional Required Services"). IHG will make available to Licensee the Additional Required Services as set forth in Schedule 3 (Additional Required Services) attached hereto, pursuant to an Order Form and/or a Participation Agreement. Licensee is obligated to purchase each of the Additional Required Services. IHG and/or its Service Provider may modify or cause to be modified the features and functionality of the Additional Required Services in the ordinary course of technology development, and IHG will notify
Licensee of any such material modification. IHG reserves the right (i) to change the Service Provider for any Additional Required Service, and (ii) to add or remove Core Services or to replace any of the Additional Required Services.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, licensees are obligated to purchase the 'Additional Required Services'. These services consist of hardware, software, and other services that are mandatory for the licensee's technology configuration to operate the hotel within the Crowne Plaza brand system. These Additional Required Services are detailed in Schedule 3 of the FDD and are obtained through an Order Form or Participation Agreement.
IHG (InterContinental Hotels Group) has the right to modify the features and functionality of these Additional Required Services as technology evolves, and they will notify the licensee of any significant changes. IHG also retains the right to change the service provider for these services and to add or remove Core Services or replace any of the Additional Required Services.
This requirement ensures that all Crowne Plaza hotels maintain a consistent technological standard, which IHG believes is necessary for brand uniformity and operational efficiency. However, it also means that licensees must budget for these ongoing technology costs and remain adaptable to changes in service providers or service offerings dictated by IHG.