What is the Crowne Plaza licensee's obligation regarding the number and qualifications of individuals employed at the Hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Licensee must ensure suitable, qualified individuals are employed at the Hotel in such number as is sufficient to staff all positions at the Hotel in accordance with the Standards.
None of Licensee's employees will be considered to be IHG's employees.
Licensee acknowledges and agrees that Licensee, or its management company engaged to operate the Hotel, as may be applicable, is the sole employer of the employees working at the Hotel and that IHG does not directly or indirectly control employment policies, discipline, recruitment or termination and that Licensee is solely responsible for all employment decisions, regardless of whether Licensee has received guidance with respect to such matters from IHG.
Neither Licensee nor any of Licensee's employees whose compensation Licensee pays may in any way, directly or indirectly, expressly or by implication, be construed to be IHG's employee for any purpose, including but not limited to with respect to any mandated or other insurance coverage, tax or contributions, or requirements pertaining to withholdings, levied or fixed by any city, state or federal governmental agency.
IHG will not have the power to hire or fire Licensee's employees.
Licensee expressly agrees, and will never contend otherwise, that IHG's authority under this License to approve certain of Licensee's employees for qualification to perform certain functions for the Hotel does not directly or indirectly vest in IHG the power to hire, fire or control any such employee.
Licensee further agrees that any such minimum requirements established by IHG are solely for the purpose of ensuring that the Hotel is at all times operated in accordance with the Standards and with the attributes of the Brand known to, and desired by, the consuming public and associated with the Marks.
Moreover, Licensee agrees that any training provided by IHG for Licensee's employees is intended to impart to those employees, under Licensee's ultimate authority, the various procedures, protocols, systems and operations of the Hotel and in no fashion reflects any employment relationship between IHG and such employees.
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 responsible for ensuring that the hotel employs a sufficient number of suitably qualified individuals to staff all positions, adhering to the brand's standards. This means the franchisee must hire and maintain a workforce capable of meeting the operational demands and service quality expected of a Crowne Plaza hotel.
Crowne Plaza emphasizes that the licensee is the sole employer of the hotel's staff. IHG (InterContinental Hotels Group) does not have any direct or indirect control over employment policies, disciplinary actions, recruitment, or termination decisions. The franchisee is fully responsible for all employment-related decisions, even if they receive guidance from IHG. This clarifies that IHG's brand standards and any training provided to the staff do not establish an employment relationship between IHG and the hotel's employees.
This arrangement protects IHG from potential liabilities related to employment matters at the franchised hotels. It also gives the Crowne Plaza franchisee autonomy in managing their workforce, allowing them to tailor their staffing strategies to local market conditions and business needs, while still maintaining the brand's standards for service and quality. The franchisee must ensure that their employees meet the qualifications and standards necessary to uphold the Crowne Plaza brand image.