What is the purpose of the HP Joinder Agreements, and when must a Crowne Plaza franchisee enter into them?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
In June 2022, SCH entered into an Equipment Refresh and Integration Services Agreement with Hewlett-Packard Inc. ("HP") for deployment and procurement services for the Hotel PMS. Under that agreement, HP will provide PMS hardware, software, and deployment services at your Hotel. In 2021, SCH entered into a NextGen Payment ("NGP") Installation Services Agreement with HP for the procurement and installation services of a credit card solution. Pursuant to that agreement, HP will provide hardware, software, and installation services at your hotel. You must enter into the HP Joinder Agreements in order to obtain the PMS hardware, software, and deployment services, and the NGP solution or such successor payments program as may be implemented by SCH at your Hotel. A copy of the HP Joinder Agreement can be found in Exhibit G-9 to this disclosure document.
Source: Item 1 — THE LICENSOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–15)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the HP Joinder Agreements are required for franchisees to obtain PMS (Property Management System) hardware, software, and deployment services, as well as the NextGen Payment (NGP) solution or any successor payment program implemented by SCH (Six Continents Hotels, Inc.) at the hotel. These agreements stem from agreements SCH entered into with Hewlett-Packard Inc. (HP) in June 2022 for PMS-related services and in 2021 for NGP installation services.
In practical terms, this means that if you become a Crowne Plaza franchisee, you must enter into the HP Joinder Agreements to ensure your hotel has the necessary systems for managing property operations and processing payments. This is not optional; it's a mandatory step to secure these essential services through HP, which has been pre-selected by SCH. The FDD specifies that a copy of the HP Joinder Agreement can be found in Exhibit G-9.
The timing for entering into these agreements is critical. The FDD states that franchisees must enter into the HP Joinder Agreements in order to obtain the PMS hardware, software, and deployment services, and the NGP solution or such successor payments program as may be implemented by SCH at your Hotel. This implies that the agreements need to be in place before the hotel can effectively operate, as both PMS and payment processing are fundamental to hotel operations. Therefore, a prospective franchisee should plan to address these agreements well in advance of the hotel's opening to avoid any delays or complications.
It is important for potential Crowne Plaza franchisees to carefully review Exhibit G-9, which contains the HP Joinder Agreement, to fully understand the obligations and terms involved. Additionally, franchisees should confirm with Crowne Plaza or SCH the exact timing and procedures for executing these agreements to ensure compliance and smooth implementation of the required systems.