Who makes the final decision regarding loans or guaranties for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday is not responsible for acquiring the site for the location of your Hotel (paragraph 1.A of the License). Holiday's representative may make a personal inspection of the site and the surrounding area. However, Holiday does not grant or deny approval of a proposed site based on an evaluation of the site's overall commercial viability or legal compliance. Any review conducted by Holiday is solely for the purpose of determining whether the proposed site aligns with the brand's current strategic objectives and image. Holiday's decision not to approve a site does not constitute a representation as to the site's fitness or unfitness for use as a franchise location. Holiday reserves the right, in its sole discretion, to reject any proposed site for any reason, including reasons unrelated to commercial viability.
Within three months after the date of the License, you must submit preliminary plans for new developments. Holiday will approve your construction plans for new development (or conversion) if they meet the requirements of the License and the Standards. You may not start construction until you obtain Holiday's approval. Construction or remodeling costs and arrangements are solely your responsibility. Holiday will supply prototype architectural plans which you must use. An architect approved by Holiday must adapt these plans for a specific site and construction type. You must commission and pay your architect directly.
Source: Item 10 — Financing (FDD page 69)
What This Means (2025 FDD)
The 2025 Crowne Plaza Franchise Disclosure Document does not explicitly state who makes the final decision regarding loans or guaranties for a Crowne Plaza franchise. However, Item 11 discusses assistance before the hotel opens, stating that Holiday Hospitality Franchising, LLC is not responsible for acquiring the site for the location of your Hotel. It also mentions that the franchisee is solely responsible for construction or remodeling costs and arrangements.
While Holiday's representative may inspect the site, Holiday does not grant or deny approval of a proposed site based on an evaluation of the site's overall commercial viability or legal compliance. Holiday reserves the right, in its sole discretion, to reject any proposed site for any reason, including reasons unrelated to commercial viability.
Given that franchisees are responsible for securing their own financing and site acquisition, it is likely that the final decision regarding loans and guaranties rests with the financial institutions or other lending parties involved, based on their assessment of the franchisee's creditworthiness and the project's viability. A prospective franchisee should clarify this point with the franchisor during their due diligence process to fully understand the financing landscape.