What is the minimum application fee for a Crowne Plaza Brand System License?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
ial Fees described here, but Holiday is not obligated to do so.
APPLICATION FEE:
When you submit an application for a Brand System License – whether for a new development, conversion, change of ownership or re-licensing – you must pay Holiday an initial application fee (the "Application Fee") of $500 per guest room, but not less than $75,000.
If Holiday does not approve your application for a License, or if you withdraw the application before Holiday approves or denies it, Holiday will return the Application Fee to you, less $15,000 to cover costs for evaluating your application. If Holiday approves the application subject to certain requirements, Holiday may revoke its approval if you fail to meet those requirements. Once Holiday approves the application (even if Holiday subsequently revokes its approval), the Application Fee is nonrefundable. If you and Holiday agree to add any guest rooms to the Hotel, then you must pay
Source: Item 5 — INITIAL FEES (FDD pages 27–31)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, when submitting an application for a Brand System License, whether for a new development, conversion, change of ownership, or re-licensing, the applicant must pay an initial application fee. This fee is $500 per guest room, but not less than $75,000.
This means that even for a small hotel, the application fee is substantial. For example, a hotel with 100 guest rooms would still need to pay the minimum fee of $75,000, rather than $50,000 (100 rooms x $500). This initial investment is a significant consideration for prospective franchisees.
The FDD also specifies that if Crowne Plaza does not approve the application, or if the applicant withdraws it before approval, Crowne Plaza will return the Application Fee, less $15,000 to cover costs for evaluating the application. However, once Crowne Plaza approves the application, the Application Fee is nonrefundable, even if Crowne Plaza subsequently revokes its approval. Additionally, if the franchisee and Crowne Plaza agree to add any guest rooms to the Hotel, then the franchisee must pay a nonrefundable Room Addition Fee of $500 for each new approved guest room.