Who owns the WAN hardware installed at a Crowne Plaza hotel for communication with IHG's systems?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG may install or cause to be installed a wide area network (WAN) and WAN Hardware for Hotel's use in communicating with IHG's systems.
IHG shall have the right to determine the optimal method of access based upon the Software and Hardware located at the Hotel and the telecommunications and other services available to Licensee.
Licensee acknowledges that Licensee will not acquire any ownership interest in the Hardware related to or installed in connection with the WAN.
Licensee hereby irrevocably authorizes IHG or its agents, or the agents of any WAN Hardware lessor or supplier, to enter upon the Hotel property for the purpose of installing, inspecting, maintaining, and removing the WAN Hardware.
IHG requires that Licensee, at Licensee's cost, purchase broadband Internet access at the Hotel in order to establish the primary WAN link.
IHG's WAN link will be used as a backup if the primary WAN link fails.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the franchisee will not acquire any ownership interest in the Wide Area Network (WAN) hardware installed at the hotel for communication with IHG's systems. IHG may install or cause the installation of the WAN hardware. The franchisee irrevocably authorizes IHG, its agents, or the agents of any WAN hardware lessor or supplier to enter the hotel property to install, inspect, maintain, and remove the WAN hardware.
While the franchisee does not own the WAN hardware, they are responsible for several aspects related to its installation and operation. The franchisee must purchase broadband internet access at their own cost to establish the primary WAN link. They are also responsible for providing a suitable location for the hardware installation, ensuring the required electrical connections and cable installation are in place, and performing any necessary site preparation work. The franchisee must also ensure the WAN hardware is installed in the hotel's information technology room in a cabinet that meets IHG's requirements, is clearly labeled, and is connected to an uninterruptible power supply.
Upon the expiration or termination of the franchise license, the franchisee is responsible for the cost of de-installing the WAN hardware from the hotel. This de-installation must be performed by a service provider reasonably acceptable to IHG. The franchisee is also prohibited from moving, servicing, altering, or damaging the WAN hardware once it is installed. These stipulations highlight the franchisee's financial responsibilities and operational constraints regarding the WAN hardware, despite not owning it.