factual

How often, at a minimum, must a Crowne Plaza franchisee replace the PMS hardware and software?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

Hotels will operate a computerized property management system (PMS) that has been certified by SCH and must maintain the PMS in conformance with the Standards of SCH. The PMS must have a database schema and shell which is approved by SCH, in order for the interface from the PMS to the Reservation System to work correctly. Hotels will be responsible for establishing and maintaining proper application access control to align with Payment Card Industry Data Security Standards (PCI-DSS). Operating systems, database, and other programs must be maintained with current approved security patches that are fully supported by the software vendors. The PMS must be periodically updated and maintained to conform to SCH approved software versions, technology advancements and security requirements. This may require certain hardware and/or software components to be replaced or upgraded. At a minimum, the PMS hardware and software must be replaced at least every 48 months. PMS hardware includes server(s), workstations, printers, monitors, ups, back-up device, and associated network components.

Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, franchisees must replace the Property Management System (PMS) hardware and software at least every 48 months. This requirement ensures that the hotel's technology remains up-to-date and compliant with security standards. The PMS hardware includes servers, workstations, printers, monitors, UPS (uninterruptible power supply), backup devices, and associated network components.

Maintaining a current PMS is crucial for several reasons. It ensures compatibility with the Crowne Plaza's reservation system and adherence to Payment Card Industry Data Security Standards (PCI-DSS). Regular updates and replacements help protect sensitive guest data and maintain the integrity of financial transactions. Additionally, keeping the PMS current allows the hotel to take advantage of technology advancements and maintain a competitive edge.

The financial implications of this requirement should be carefully considered by prospective franchisees. While the FDD does not specify the exact cost of PMS hardware and software replacement, it is a recurring expense that must be factored into the hotel's operating budget. Franchisees should also be aware that they must use the Opera PMS solution and enter into a license agreement with its supplier, Oracle America, Inc. Ongoing maintenance and support fees are also required, adding to the overall cost of maintaining the PMS.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.