Is a Crowne Plaza licensee obligated to purchase each of 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 Crowne Plaza's 2025 Franchise Disclosure Document, licensees are indeed obligated to purchase each of the Additional Required Services. These services consist of specific hardware, software, and other services that are mandatory for the hotel's technology configuration, all of which are necessary to operate within the Crowne Plaza Brand System. These Additional Required Services are detailed in Schedule 3 of the FDD.
IHG (Holiday Hospitality Franchising, LLC) will make these Additional Required Services available to the licensee through an Order Form or Participation Agreement. While IHG can modify the features and functionality of these services as technology evolves, they are required to notify the licensee of any material changes. IHG also retains the right to change the service provider 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 essential for brand uniformity and operational efficiency. For a prospective franchisee, this means they must budget for these mandatory technology services and be prepared for potential changes or updates to these services during the term of their license. Understanding the costs and potential modifications to these services is crucial for financial planning and operational readiness.