How is the monthly Royalty Fee for a Crowne Plaza franchise calculated, as described in Item 4 of Attachment A?

According to the 2025 Crowne Plaza FDD, the monthly Royalty Fee is detailed in Item 4 of Attachment A. The franchisee is obligated to pay this fee in exchange for the franchise rights granted by IHG. The FDD also indicates that additional royalties may be charged on revenues from any activity added at the hotel by mutual agreement, especially if it is not generally offered at Brand System Hotels or if it is designed or developed by or for IHG or its affiliates.

This royalty is separate from any goods, services, or assistance that IHG might provide. In addition to the royalty fee, franchisees must also contribute to the IHG System Fund, which includes a Services Contribution. This Services Contribution is used by IHG for activities that strengthen the brand, such as advertising, marketing, sales, guest services, reservations, standards, training programs, research, and the development of new services and platforms.

Prospective Crowne Plaza franchisees should be aware of these ongoing fees and how they impact their profitability. It is important to review Item 4 of Attachment A carefully to understand the exact calculation of the Royalty Fee and any potential additional royalty charges. Understanding how these fees are calculated and what they cover is crucial for assessing the financial viability of the franchise.