When does Crowne Plaza's obligation to pay for a Service Component begin?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
(7) Crowne Plaza Hotel Marketing Association. A fee in an amount equal to $3.00 per room, per month for mandatory participation in the Crowne Plaza Hotel Marketing Association. This amount is subject to change from time to time by the Crowne Plaza Hotel Marketing Association. Said fees shall be invoiced in advance, but paid in arrears along with all invoiced fees.
3. Service Framework.
- 3.1 Core Services. IHG or an Affiliate of IHG has entered into Enabling Agreements with Service Providers to provide certain Hardware, Software, and Services. IHG will make available to Licensee the Hardware, Software, and Services for the core technology solutions set forth in Schedule 2 (Core Services) attached hereto (the "Core Services"). These Core Services are provided by IHG, an Affiliate of IHG, or Service Providers and are required to operate the Hotel in the Brand System. IHG and/or its Service Provider may modify or cause to be modified the features and functionality of the Core Services in the ordinary course of technology development, and IHG will notify Licensee of any such material modification. In addition, IHG reserves the right to add or remove Core Services or to replace any of the Core Services.
- 3.2 Additional Required Services. IHG or an Affiliate of IHG has entered into Enabling Agreements with Service Providers approved by IHG to provide certain Hardware, Software, and Services that are mandatory components of Licensee's technology configuration required to operate the Hotel in the Brand System ("Additional Required Services"). IHG will make available to Licensee the Additional Required Services as set forth in Schedule 3 (Additional Required Services) attached hereto, pursuant to an Order Form and/or a Participation Agreement. Licensee is obligated to purchase each of the Additional Required Services. IHG and/or its Service Provider may modify or cause to be modified the features and functionality of the Additional Required Services in the ordinary course of technology development, and IHG will notify
Company will provide at no charge routine mechanical repair including line replacements and flavor changes/additions that are reasonable and necessary for Dispensers. Hotels must utilize Company's service network for such service. Any Special Service Calls are not considered routine service and will not be provided free of charge. Charges for Special Service Calls or for routine mechanical repair calls will be charged at Company's then current rates. Such charges will be invoiced*.* Charges will include labor, travel time, parts, and administrative costs. Any unpaid invoices by a Hotel will be handled in accordance with the Unpaid Invoice Procedure set forth above.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the timing of payment obligations for service components depends on the type of service. For the Crowne Plaza Hotel Marketing Association, a fee of $3.00 per room per month is invoiced in advance but paid in arrears along with all invoiced fees.
For core technology solutions, IHG (InterContinental Hotels Group) makes available hardware, software, and services, and may modify these, notifying the licensee of material changes. IHG also reserves the right to add, remove, or replace core services. Additional required services also involve hardware, software, and services, with licensees obligated to purchase these as per order forms or participation agreements. IHG can change service providers and modify or replace these additional required services as well.
For fountain equipment and juice equipment, Crowne Plaza provides routine mechanical repairs, including line replacements and flavor changes for dispensers, at no charge, utilizing the company's service network. However, special service calls are not considered routine and are charged at the company's current rates, including labor, travel time, parts, and administrative costs, which are then invoiced. Unpaid invoices are handled according to a specific procedure, potentially leading to refusal of further beverage deliveries until the invoice is settled.