How often can the PMS Provider increase the maintenance and support fee for a Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The PMS Provider will provide you with a third-party license agreement for the use of the PMS software. (see Items 1, 8 and 11), which will be prepared for you after you complete the Oracle New Account Setup Form, the form of which is attached to this disclosure document as Exhibit G-7. This license agreement includes on-going maintenance and support for the PMS software. The PMS Provider will bill you annually for the support fee. The PMS Provider may not increase the maintenance and support fee more than once during any calendar year. You must also pay support fees for the other components of property-level systems, such as PMS equipment maintenance, and for other systems which interface to the Opera PMS system; such as the telecommunications system, the electronic door locking and keycard system, and the specialized sales software. Hardware and software maintenance fees may vary based on the number of rooms at the Hotel. The fees for local and long-distance telephone service and line charges are not included in the estimated fees on the chart. The costs will vary according to your technology needs, and the costs listed on the chart are an estimate.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the PMS (Property Management System) Provider, which currently requires Crowne Plaza hotels to use the Opera PMS software, can increase the maintenance and support fee no more than once per calendar year. This fee covers ongoing maintenance, support, upgrades, and new versions of the required PMS software. The PMS Provider directly bills and collects this fee from the franchisee.
In addition to the PMS software support fee, Crowne Plaza franchisees must also budget for ongoing equipment maintenance for the PMS hardware, arranged through either SCH or an approved vendor. The costs for this hardware maintenance will vary based on the hotel's technology needs. Franchisees are also responsible for support fees for other property-level systems that interface with the Opera PMS system, such as telecommunications, electronic door locking, keycard systems, and specialized sales software. These hardware and software maintenance fees can fluctuate depending on the number of rooms at the hotel.
Prospective Crowne Plaza franchisees should carefully review the third-party license agreement provided by the PMS Provider, as it outlines the specific terms and conditions for the PMS software, including the maintenance and support. Understanding the frequency and potential amount of fee increases is crucial for accurate financial planning. Additionally, franchisees should inquire about the costs associated with maintaining and supporting other integrated systems to get a comprehensive view of their technology expenses.