Who is responsible for covering the travel, lodging, and other expenses associated with training for Crowne Plaza franchisees and their employees?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Training fees do not include the cost of travel, lodging, transportation, meals, or any other expenses of Licensee's employees attending training, or IHG employee or agent expenses relating to on-site support.
Licensee will also pay reasonable travel and related expenses, including lodging and meals for the training and implementation personnel, as well as such expenses for the employees of Licensee participating in any training or other instruction.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the franchisee, referred to as the Licensee, is responsible for covering the costs of travel, lodging, and other expenses for themselves and their employees when attending training programs. These expenses are not included in the training fees. Additionally, the Licensee is responsible for covering reasonable travel and lodging expenses for Crowne Plaza's training and implementation personnel, as well as for the Licensee's employees participating in any training or other instruction.
This means that while Crowne Plaza may provide the training programs, the franchisee must budget for all associated travel and accommodation costs. These costs can include transportation, hotel stays, meals, and any other incidental expenses incurred during the training period. This financial responsibility extends both to the franchisee's own staff and to Crowne Plaza's personnel involved in providing on-site support or training.
Prospective Crowne Plaza franchisees should carefully consider these additional expenses when evaluating the overall cost of the franchise. It is important to factor in the number of employees requiring training, the location of the training, and the potential duration of the training programs to accurately estimate these costs. Franchisees should also clarify with Crowne Plaza what constitutes "reasonable" expenses for their personnel to avoid any unexpected charges.
This arrangement is fairly typical in the franchise industry, where franchisees generally bear the costs of sending their employees for training. However, the specific details can vary between franchise systems, so it is crucial for prospective franchisees to understand these obligations before signing the franchise agreement.