What is the Crowne Plaza licensee's responsibility regarding taxes resulting from the provision of Curated Solutions, and what is the payment timeframe if IHG pays these taxes initially?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 5.5 Taxes. All Taxes resulting from the provision of the Curated Solutions under this Master Technology Schedule (except for taxes based solely on the net income of IHG and its Affiliates) shall be the responsibility of Licensee. If IHG is required to pay any such Taxes or penalties or interest relating thereto, IHG will provide an invoice for such amounts and Licensee will pay such amounts within thirty (30) days of the date of the invoice.
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 all taxes resulting from the provision of Curated Solutions, except for taxes based solely on the net income of IHG and its affiliates. This means that as a Crowne Plaza franchisee, you will need to budget for and pay any sales taxes, use taxes, or other similar taxes that arise from the Curated Solutions.
If IHG is required to pay these taxes, penalties, or interest related to these taxes, they will invoice the licensee for the amounts paid. The Crowne Plaza licensee is then obligated to pay the invoiced amount within thirty days of the invoice date. This arrangement ensures that IHG is reimbursed promptly for any tax-related expenses they incur on behalf of the franchisee related to the Curated Solutions.
This section of the FDD highlights the importance of understanding and budgeting for all potential tax liabilities associated with operating a Crowne Plaza franchise, particularly those related to the Curated Solutions. It also emphasizes the need to maintain open communication with IHG regarding tax matters to ensure timely payments and avoid any penalties or interest charges.