Regarding card acceptance for Crowne Plaza, what risks should a franchisee be aware of?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Cards present risks of loss and non-payment that are different than those with other payment systems, including risks related to Chargebacks and other Cardholder disputes.
In deciding to accept Cards, you should be aware that you are also accepting these risks and that you are agreeing to comply with the rules and requirements of Visa®, Mastercard®, Discover®, American Express®, and other Card Organizations.
With respect to Chargebacks – we do not decide which transactions are charged back and we do not control the ultimate resolution of Chargebacks.
While we can attempt to reverse a Chargeback to the Issuer, we can only do so only if the Issuer agrees to accept it or the Card Organization requires the Issuer to do so after a formal appeal process.
American Express transactions are funded by American Express. American Express will provide you with its own agreement that governs those transactions. We are not responsible for and assume no liability with regard to the funding and settlement of American Express transactions. American Express will charge additional fees for the services it provides.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, accepting cards carries inherent risks of loss and non-payment, distinct from other payment methods. These risks include chargebacks and cardholder disputes. A franchisee must understand and accept these risks and adhere to the rules and requirements set by Visa, Mastercard, Discover, American Express, and other card organizations.
Crowne Plaza franchisees should be aware that they do not have control over chargeback decisions or their resolutions. While attempts can be made to reverse a chargeback, the final decision rests with the issuer or the card organization after a formal appeal. This means that franchisees could potentially lose revenue due to chargebacks, even if they believe the charge was valid.
Furthermore, American Express transactions are directly funded by American Express, which has its own agreement with the franchisee. Crowne Plaza is not responsible for the funding and settlement of these transactions, and American Express charges additional fees for its services. This division of responsibility means franchisees must manage their relationship with American Express separately and be aware of the additional costs involved.
In summary, a prospective Crowne Plaza franchisee needs to carefully consider the risks associated with card acceptance, including potential losses from chargebacks and the need to comply with various card organization rules. Understanding these factors is crucial for managing finances and maintaining profitability.