When is the monthly Royalty Fee due to IHG for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
For each month (or part of a month) during the License Term, Licensee will pay the fees set forth in this paragraph 3.B. to IHG, which shall be due to IHG by the "Due Date" (except as otherwise noted below including, without limitation, the Technology Services Fee and the Crowne Plaza Hotel Marketing Association Fee, which are payable monthly in advance). The term "Due Date" means the fifteenth (15th) day of the following month; but if the 15th day of the month falls on a weekend or bank holiday, then the Due Date shall be the next business day.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the monthly Royalty Fee is due to IHG by the "Due Date." The "Due Date" is defined as the fifteenth (15th) day of the following month. However, if the 15th day of the month falls on a weekend or bank holiday, the Due Date will be the next business day.
For a Crowne Plaza franchisee, this means that the Royalty Fee for January's revenues, for example, is due on February 15th, unless that date falls on a weekend or bank holiday. In that case, the franchisee would have until the next business day to remit payment.
It's important to note that the Technology Services Fee and the Crowne Plaza Hotel Marketing Association Fee are payable monthly in advance, which is an exception to the standard Royalty Fee due date. Franchisees should also be aware that IHG has the option to require electronic funds transfers, direct account debits, ACH, or similar payment methods at any point during the license term.