To whom is the Loyalty Program Contribution payable for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | |||
|---|---|---|---|
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members | Same date as Royalty (Payable to SCH) | Note 3 |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Loyalty Program Contribution is payable to SCH. The Loyalty Program, currently marketed as "IHG One Rewards" and "IHG® Business Rewards", requires hotels to participate as long as SCH chooses to market it.
The Loyalty Program Contribution is calculated as 4.55% of Qualifying Full Folio Revenue from Loyalty Program members or 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members. These contributions are due on the same date as the Royalty payments.
This means that as a Crowne Plaza franchisee, you are obligated to remit these Loyalty Program Contributions to SCH, impacting your hotel's revenue based on the participation and revenue generated from loyalty program members. Understanding the terms and potential changes to the Loyalty Program is crucial for managing costs and revenue effectively.