What is the payment schedule for the Building Construction costs for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|---|---|---|
| Building Construction | $9,952,000 to $ 66,419,000 | As required | 3rd parties |
| ( Note 2) (Note 3) |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the building construction costs, which range from $9,952,000 to $66,419,000, are to be paid 'as required' to third parties. This means the payment schedule will be determined by agreements made between the franchisee and the construction companies or contractors involved in the building process.
For a prospective Crowne Plaza franchisee, this indicates that managing construction expenses will involve direct negotiation with construction vendors. Franchisees should carefully review and understand the payment terms outlined in their construction contracts to ensure they can meet the financial obligations as they come due. This also means budgeting and financial planning are critical during the construction phase.
Unlike some franchise systems where the franchisor dictates specific payment schedules or manages the construction process, Crowne Plaza franchisees have more autonomy in this area but also bear the responsibility of overseeing these significant expenditures. It is important for franchisees to obtain detailed cost breakdowns and payment milestones from their contractors to avoid potential disputes or delays during construction. Franchisees should also ensure they have adequate financing in place to cover these costs as they are incurred.