What is the maximum increase allowed for the monthly NGP fee for a Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Each licensee will be required to enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, and a participation agreement with SCH (see Exhibit G-4). Your monthly NGP fee may increase according to the terms of the NGP agreement signed at install (no more than a 5% increase from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the monthly Next-Gen Payment (NGP) fee that franchisees pay to SCH (presumably, Service Company Holiday) may increase, but the increase is capped. Specifically, the monthly NGP fee can increase by no more than 5% from the original quoted rate. This increase is based on increases in costs incurred by SCH to provide the service.
This means that if a Crowne Plaza franchisee's initial NGP fee is $1,000 per month, the maximum it could increase is $50 (5% of $1,000), resulting in a new monthly fee of $1,050. The exact amount of the fee will be defined on the quote received prior to installation. Franchisees should carefully review the Next-Gen Payment Agreement and the initial quote to understand the potential for fee increases and the factors that could trigger them.
It's important for prospective Crowne Plaza franchisees to factor in this potential fee increase when budgeting for ongoing operating expenses. While a 5% increase may seem small, it can add up over time and impact profitability. Franchisees should also inquire about the specific costs that could lead to an increase in the NGP fee to better anticipate and manage these expenses.