When is the Property Improvement Plan (“PIP”) fee payment due 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 |
|---|---|---|---|
| Application Fee | $125,000 | Lump sum with | H oliday |
| (Note 1) | application | ||
| Property Improvement Plan | $ 0 to $10,000 | Before you | H oliday |
| (“PIP”) fee | submit your | ||
| (Note 1) | application |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the Property Improvement Plan (PIP) fee, which ranges from $0 to $10,000, is due before you submit your application to Holiday. This fee is separate from the costs associated with actually completing the PIP, which would be paid to third-party contractors and suppliers as required.
This means that as a prospective Crowne Plaza franchisee, you must budget for this initial fee upfront as part of your application process. The fee covers inspections during the renovation period and after the completion date to ensure the work meets Crowne Plaza's standards. Failing to complete the PIP to Crowne Plaza's satisfaction can result in re-inspection fees of up to $5,000 for each re-inspection, along with providing complimentary lodging for the inspector.
Furthermore, if any PIP milestones need to be extended, Crowne Plaza may assess another fee of up to $5,000, and you must provide complimentary lodging for any PIP-related inspections. Therefore, it's crucial to adhere to the PIP timeline and standards to avoid incurring additional costs and potential penalties. This is a fairly standard practice in the franchise industry, as franchisors want to ensure brand consistency across all locations.