When is payment due for Crowne Plaza after the invoice date?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel shall pay the fees invoiced for payment within thirty (30) days after the date of the applicable invoice.
Unless otherwise set forth on Exhibit 1, all invoiced amounts shall be due immediately upon receipt and payment shall be made to IHG within fifteen (15) days from the receipt of invoice.
For each month (or part of a month) during the License Term, Licensee will pay the fees set forth in this paragraph 3.B. to IHG, which shall be due to IHG by the "Due Date" (except as otherwise noted below including, without limitation, the Technology Services Fee and the Crowne Plaza Hotel Marketing Association Fee, which are payable monthly in advance). The term "Due Date" means the fifteenth (15th) day of the following month; but if the 15th day of the month falls on a weekend or bank holiday, then the Due Date shall be the next business day.
If any amounts under this License are not paid when due, such non-payment shall constitute a breach of this License and, in addition, such unpaid amounts will accrue interest beginning on the first day of the month following the due date at 1½% per month or the maximum interest permitted by applicable law, whichever is less.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the payment due date depends on the type of fee being invoiced. For the Next-Gen Payments Solution, payment is due within thirty (30) days after the invoice date. However, for services described in the Participation Agreement, payment is due within fifteen (15) days from the receipt of the invoice, unless otherwise stated on Exhibit 1. For the Technology Services Fee and the Crowne Plaza Hotel Marketing Association Fee, payment is due monthly in advance. For most other fees, payment is due to IHG by the 15th day of the following month. If the 15th falls on a weekend or bank holiday, the due date is the next business day.
Interest accrues on unpaid amounts beginning the first day of the month following the due date at a rate of 1½% per month, or the maximum interest permitted by applicable law, whichever is less. IHG also has the option to require electronic funds transfers, direct account debits, ACH, or similar payment methods. In the event of payment default, IHG can suspend access to and use of the Next-Gen Payments Solution. The franchisee is also responsible for all collection costs and attorney fees incurred by IHG to collect any delinquent amounts.
Prospective Crowne Plaza franchisees should note the varying payment terms for different fees and ensure they have sufficient funds available to meet these obligations. Understanding these payment terms is crucial for managing cash flow and avoiding late payment penalties or service disruptions. Franchisees should clarify with IHG any uncertainties regarding payment schedules for specific fees to ensure compliance and maintain a positive business relationship.