What is the payment schedule for the Land costs for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
a or Crowne Plaza Suites hotel.
These estimates do not include the cost of land and contingency funds or other items that Holiday cannot estimate.
YOUR ESTIMATED INITIAL INVESTMENT
| Type of Expenditure | Amount | Method of Payment and When Due | To Whom Payment Is to be Made |
|---|
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the payment schedule for land costs is "as required." The franchisee will make payments directly to third parties. The FDD estimates land costs for a 3 1/2 to 5-acre plot to be between $0 and an unspecified amount.
This means that the timing of land payments will depend on the specific agreements the franchisee makes with landowners or developers. Unlike some franchise fees that are paid to the franchisor on a set schedule, land costs are managed independently by the franchisee.
Prospective Crowne Plaza franchisees should carefully consider the implications of this payment structure. They will need to budget and plan for land acquisition costs based on their individual circumstances and negotiate payment terms with the relevant third parties. It is important to secure financing and have a clear understanding of the payment schedule to avoid any delays in the development of the Crowne Plaza hotel.