Does Crowne Plaza offer a formal program for direct or indirect financing to franchisees?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Holiday does not offer any formal program for direct or indirect financing. Holiday, SCH or its affiliate, General Innkeeping Acceptance Corporation ("GIAC"), may furnish loans or guaranties to licensees. Holiday, SCH and GIAC consider making loans or guaranties under terms and conditions that would be negotiated on a case -by -case basis with the prospective licensee and any decision to make a loan or provide a guaranty would be made in the judgment of Holiday, SCH or GIAC alone, and conditioned upon approval of the Executive Committee and Board of Directors. It is your responsibility alone to obtain adequate financing for all expenses related to the development, opening and operation of the hotel.
Source: Item 10 — Financing (FDD page 69)
What This Means (2025 FDD)
According to the 2025 FDD, Crowne Plaza does not offer a formal program for direct or indirect financing to franchisees. However, the FDD indicates that Holiday, SCH, or its affiliate, General Innkeeping Acceptance Corporation (GIAC), may provide loans or guaranties to franchisees.
The decision to provide loans or guaranties is made on a case-by-case basis, subject to the judgment of Holiday, SCH, or GIAC, and requires approval from the Executive Committee and Board of Directors. This implies that financing is not guaranteed and depends on the franchisee's financial situation and the franchisor's assessment.
The FDD clearly states that it is the franchisee's sole responsibility to secure adequate financing for all expenses related to the development, opening, and operation of the hotel. This means prospective Crowne Plaza franchisees should not rely on the franchisor for financing and should explore other funding options.
This type of financing arrangement, where the franchisor may offer financing but does not have a formal program, is not uncommon in the franchise industry. Franchisees should carefully review the terms and conditions of any potential financing offered by the franchisor and compare them to other available options.