What is the maximum fee a Crowne Plaza may be assessed if any PIP milestones need to be extended?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
vement Plan, which may include ongoing quality evaluations, required capital improvements, and other actions as may be necessary to improve guest satisfaction.
If your hotel is subject to a PIP, it will be inspected during the renovation period, and after the required completion date to verify satisfactory completion of all of the work detailed therein. If the PIP is not completed to our satisfaction at the time of the inspection at the completion date, you will be assessed a fee of up to $5,000 for the first re-inspection and any subsequent re-inspections we perform until the PIP work is completed to our satisfaction. You must also provide complimentary lodging at the hotel for the inspector performing a re-inspection. Your hotel may also be assessed a fee of up to $5,000 in the even
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, if a hotel is subject to a Property Improvement Plan (PIP), it will be inspected during the renovation and after completion to verify the work. If the PIP is not completed to Crowne Plaza's satisfaction by the completion date, the franchisee may be assessed a fee. For the first re-inspection and any subsequent re-inspections, the fee can be up to $5,000 until the PIP work is completed satisfactorily.
Additionally, if any PIP milestones need to be extended, the Crowne Plaza franchisee may be assessed a fee of up to $5,000. The franchisee must also provide complimentary lodging at the hotel for the inspector during these PIP-related inspections.
This fee is in addition to the initial PIP fee, which can range from $0 to $10,000, as listed in the table of estimated initial expenditures. This highlights the importance of completing the PIP on time and to Crowne Plaza's standards to avoid incurring these additional costs. Failing to meet these requirements can result in significant financial penalties for the franchisee.