How much is the Comfort Letter Processing Fee for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
• Fail third quarter = Assess | Quarterly Assessment appears on invoice (Payable to SCH) | Note 24 |
| TYPE OF FEE | AMOUNT | DUE DATE | REMARKS |
|---|---|---|---|
| $2,500 /standard • Fail fourth quarter = Assess $5,000/standard • Capped at $5,000 per quarter | |||
| Employee Engagement Survey | $7 to $12 per employee each year | Annually (Payable to designated third party provider) | Note 25 |
| F&B POS Support | $45.00 per workstation per month | Monthly (Payable to an approved supplier) | Note 7 |
| Comfort Letter Processing Fee | $2,500 for the preparation and processing of any mezzanine, replacement or subsequent comfort letters after the initial senio |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the Comfort Letter Processing Fee is $2,500. This fee is charged for the preparation and processing of any mezzanine, replacement, or subsequent comfort letters after the initial senior lender letter. This fee is payable to Holiday upon demand. However, IHG (InterContinental Hotels Group) may waive this fee at their discretion.
In practical terms, this means that if a Crowne Plaza franchisee requires additional comfort letters beyond the initial one, they should budget $2,500 for each request. Comfort letters are often required by lenders during financing or refinancing, so this fee could arise during the initial setup of the franchise or later on if the franchisee seeks to modify their financing arrangements.
It's important to note that while the fee is generally required, IHG has the option to waive it. A prospective franchisee might want to discuss with IHG under what circumstances they might consider waiving this fee. This could potentially save the franchisee a significant amount of money, especially if multiple comfort letters are needed.