With whom will a Crowne Plaza licensee be required to enter into a participation agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
the chart. The costs will vary according to your technology needs, and the costs listed on the chart are an estimate.
Next-Gen Solutions: Upon activation of the NGP program at your Hotel, you will enter into a Next-Gen Payment Agreement with SCH (See Exhibit G-4). SCH will immediately bill you monthly and administer support for the hardware and software. All Hotels are required to use NGP or such successor payments program as may be implemented by SCH. Pursuant to the terms of the Next-Gen Payment Agreement, licensee will be liable for payment to IHG of an early termination fee for any reason equal to (x) 50% of the NGP monthly fee, multiplied by (y) the remaining monthly payments in the term.
Each licensee will be required to enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, and a participation agreement with SCH (see Exhibit G-4). Your monthly NGP fee may increase according to the terms of the NGP agreement signed at install (no more than a 5% increase from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.
Guest Internet Access: For Guest Internet Access ("GIA") Bandwidth (IHG Connect), a Hotel will be required to utilize an approved SCH-certified provider and enter into a participation agreement with an approved provider (see Item 8 and the form of agreement attached as Exhibit G-5 to this disclosure document). Monthly service fees will vary based on regional telecommunication or cable company sources. Hotels with existing contracts with bandwidth providers must allow such contracts to expire or terminate by their own terms and not allow them to renew, by giving appropriate notice as soon as the terms of those contracts permit.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, a licensee may be required to enter into participation agreements with several entities depending on the services and systems implemented at their hotel. Specifically, the FDD mentions participation agreements related to Next-Gen Payments, Guest Internet Access, and Public Access Computers.
For Next-Gen Payments (NGP), a Crowne Plaza licensee will be required to enter into a participation agreement with SCH (Six Continents Hotels, Inc.). Additionally, they must enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider. This is part of the NGP program, which all hotels are required to use, or any successor payments program implemented by SCH.
For Guest Internet Access (GIA), a hotel will be required to utilize an approved SCH-certified provider and enter into a participation agreement with that provider. This ensures that the hotel's internet service meets the brand's standards. Similarly, for Public Access Computers in the business center, a licensee may be required to sign a participation agreement with an approved vendor for the 24x7 support program and other related services. The specific vendor will be SCH-approved, ensuring compliance with brand standards for these guest-facing technology services.
These participation agreements are essential for maintaining brand consistency and service quality across all Crowne Plaza hotels. Franchisees should carefully review the terms of these agreements, as they often include specific obligations, fees, and potential early termination penalties. Understanding these requirements is crucial for budgeting and operational planning.