When is the rent due for the dispensing equipment leased by a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Rent will be due monthly.
At Company's discretion, Company may utilize funds due Customer to offset amounts due Company under this Lease.
If Customer fails to pay, within 10 days of its due date, rent or any other amount required by this Lease to be paid to Company, Customer will pay to Company a late charge equal to five percent (5%) per month of such overdue payment, or such lesser amount that Company is entitled to receive under any applicable law
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, rent for leased equipment is due monthly. If a Crowne Plaza franchisee fails to pay the rent or any other required amount within 10 days of the due date, a late charge of 5% per month of the overdue payment will be applied, or a lesser amount as permitted by applicable law.
Crowne Plaza, at its discretion, may use funds due to the franchisee to offset amounts owed under the lease. This means that if the franchisee is owed money by Crowne Plaza for any reason, Crowne Plaza can deduct the lease payment from that amount.
Prospective franchisees should be aware of these payment terms and ensure they have sufficient cash flow to cover the monthly rent payments to avoid late fees or potential offsets. Understanding these financial obligations is crucial for managing the franchise's finances effectively.