What is Crowne Plaza's obligation to a franchisee regarding chargeback disputes?

According to the 2025 FDD, Crowne Plaza's obligation regarding chargeback disputes is limited. Specifically, Crowne Plaza is only obligated to present the franchisee's dispute to the appropriate Card Organization to the extent required by the Card Organization Rules. This means Crowne Plaza acts as an intermediary, forwarding the dispute but not actively engaging in resolving it beyond what the card network's rules mandate.

This arrangement places the onus on the Crowne Plaza franchisee to manage and resolve chargebacks, including understanding and adhering to the Card Organization Rules for disputing them. The franchisee is responsible for providing necessary documentation and meeting deadlines. Crowne Plaza will not undertake direct collection efforts against cardholders on behalf of the franchisee.

It is important for a prospective Crowne Plaza franchisee to understand the implications of this limited obligation. Chargebacks can significantly impact revenue, and the franchisee bears the responsibility for managing these disputes effectively. The FDD also mentions a 'Your Payments Acceptance Guide' that contains additional details and requirements related to chargebacks, which franchisees should review carefully. Franchisees must reimburse Crowne Plaza for all transactions that are charged back, including the chargeback itself, fees, fines, and penalties related to disputing the chargeback, and chargeback fees, regardless of the outcome of the dispute.