What is the procedure if a Crowne Plaza hotel has unpaid invoices for Company Beverages?

According to the 2025 Crowne Plaza FDD, the procedure for handling unpaid invoices from a Crowne Plaza hotel for Company Beverages is as follows: All unpaid invoices by a hotel will be subject to the Company's payment/credit terms and conditions applicable to such hotel. Furthermore, the Company may refuse to deliver any further Company Beverages to the affected hotel until the unpaid invoice is satisfied. This is referred to as the "Unpaid Invoice Procedure."

This policy means that Crowne Plaza franchisees must adhere to the payment terms established by the Company for beverage purchases. Failure to pay invoices on time can result in a disruption of beverage supply, which could negatively impact the hotel's ability to serve guests and maintain brand standards. Franchisees should ensure they have sufficient financial resources and accounting practices in place to manage payments effectively.

This type of policy is fairly standard in franchising, as franchisors need to ensure consistent payment from franchisees to maintain their own financial stability and supply chain. Franchisees should carefully review the payment/credit terms and conditions to understand their obligations and avoid any potential disruptions in service. Understanding these terms is crucial for budgeting and managing cash flow within the Crowne Plaza hotel operation.