For Crowne Plaza, who is responsible for all chargebacks and adjustments associated with the transactions that are submitted for processing?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisee is responsible for all chargebacks and adjustments associated with the transactions that they submit for processing. This means that if a customer disputes a charge and the chargeback is successful, the franchisee will be the one to bear the financial responsibility.

This responsibility extends to various fees, fines, and penalties related to disputing or arbitrating a chargeback, even if the chargeback is ultimately settled in the franchisee's favor. The franchisee is also responsible for adhering to the rules and requirements of Visa, Mastercard, Discover, American Express, and other card organizations, which include managing the risks associated with chargebacks and cardholder disputes.

While Crowne Plaza may attempt to reverse a chargeback to the issuer, their obligation is limited to presenting the dispute to the appropriate card organization. The ultimate resolution of chargebacks is not controlled by Crowne Plaza, and neither Crowne Plaza nor the issuer is responsible if a customer successfully charges back a transaction, even if the franchisee has provided goods or services and is legally entitled to payment. Therefore, franchisees need to be diligent in ensuring the validity of transactions and addressing customer disputes promptly to minimize potential chargebacks.

Given this allocation of responsibility, it is crucial for prospective Crowne Plaza franchisees to fully understand the chargeback process, associated fees, and dispute resolution mechanisms. They should also implement robust procedures for verifying transactions, resolving customer complaints, and maintaining detailed records to effectively manage and contest chargebacks when appropriate. Understanding these financial responsibilities is essential for assessing the overall profitability and risk associated with operating a Crowne Plaza franchise.