When is the Property Improvement Plan (“PIP”) fee due for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
vement Plan, which may include ongoing quality evaluations, required capital improvements, and other actions as may be necessary to improve guest satisfaction.
If your hotel is subject to a PIP, it will be inspected during the renovation period, and after the required completion date to verify satisfactory completion of all of the work detailed therein. If the PIP is not completed to our satisfaction at the time of the inspection at the completion date, you will be assessed a fee of up to $5,000 for the first re-inspection and any subsequent re-inspections we perform until the PIP work is completed to our satisfaction. You must also provide complimentary lodging at the hotel for the inspector performing a re-inspection. Your hotel may also be assessed a fee of up to $5,000 in the even
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, if a Crowne Plaza hotel is subject to a Property Improvement Plan (PIP), the hotel will be inspected during the renovation and after the completion date to ensure all work is satisfactory. If the PIP is not completed to Crowne Plaza's satisfaction by the completion date, the franchisee will be assessed a fee of up to $5,000 for the first re-inspection and any subsequent re-inspections until the work is completed satisfactorily. The franchisee must also provide complimentary lodging at the hotel for the inspector performing the re-inspection.
Additionally, a Crowne Plaza hotel may be assessed a fee of up to $5,000 if any of the PIP milestones need to be extended. In this case, the franchisee must also provide complimentary lodging at the hotel for any inspector performing PIP-related inspections.
In summary, the PIP re-inspection fee is due at the time of each re-inspection if the initial PIP is not completed to Crowne Plaza's satisfaction, and a separate fee may be assessed if PIP milestones are extended. These fees, along with the cost of complimentary lodging for inspectors, can add to the overall expense of implementing a PIP, so franchisees should ensure they fully understand the requirements and timelines to avoid these additional costs.