Who is responsible for the costs associated with the review, approval, certification, and registration of Merchant Providers for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
You are responsible for all our costs and expenses associated with our review, approval, certification (and recertification as may be required by us or the Card Organization Rules) and registration of any Merchant Providers.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the franchisee is responsible for covering all costs and expenses associated with the review, approval, certification, and registration of any Merchant Providers. This includes any recertification that may be required by Crowne Plaza or Card Organization Rules.
Before engaging any Merchant Provider, a Crowne Plaza franchisee must provide the franchisor with the Merchant Provider's legal name, contact information, and intended function in writing. The franchisee cannot use or provide Cardholder data access to any Merchant Provider until they receive approval from Crowne Plaza and, if required, confirmation of registration of that Merchant Provider with applicable Card Organizations. Crowne Plaza states that approval will not be unreasonably withheld.
The franchisee must ensure that they and their Merchant Providers comply with the registration process, which may involve site inspections, background investigations, provision of financial statements, and any other information required by Crowne Plaza or a Card Organization. They must also comply with periodic and other reporting required by a Card Organization and all applicable Card Organization Rules, including those requiring security of Cardholder data.
This means that a prospective Crowne Plaza franchisee needs to budget for these potential costs when setting up their business. They should also factor in the time and effort required to manage Merchant Provider relationships and ensure compliance with all applicable rules and regulations.