Is Crowne Plaza responsible for determining whether a franchisee is a Group Member?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
(11) strictly comply with IHG's requirements as to guest satisfaction and guest complaint programs, as such programs may be modified by IHG from time to time;
- (12) participate in IHG's quality evaluation system, as such system may be modified by IHG from time to time (the "Quality System").
The Quality System may include, but shall not be limited to, online questionnaires for the Hotel to complete and/or inspections of the Hotel by IHG's representatives;
(13) permit inspection of the Hotel by IHG's representatives at any time and give them free lodging for such time as may be reasonably required to complete their inspections; and take all such steps as are necessary to incorporate into the Hotel operations any corrections and modifications IHG requires to maintain the Standards, as quickly as is reasonably possible;
(13) promote the Hotel on a local or regional basis subject to IHG's requirements as to form, content and prior approvals;
(14) ensure that no part of the Hotel or the Brand System is used to further, promote, or divert business to a competing business or other lodging facility (including, without limitation, hotels, vacation or timeshare facilities or any similar product sold on a periodic basis), except as IHG may approve for businesses or lodging facilities owned, licensed, operated or otherwise approved by IHG or its Affiliates;
(15) use every reasonable means to encourage use of Brand System facilities everywhere by the public;
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza Franchise Disclosure Document, it is not clear whether Crowne Plaza determines if a franchisee is a Group Member. The provided excerpts do not define "Group Member" or specify who is responsible for determining this status.
However, the FDD does outline certain obligations of the franchisee to comply with IHG's (InterContinental Hotels Group) requirements. These include guest satisfaction programs, participation in IHG's quality evaluation system, allowing hotel inspections by IHG representatives, and incorporating required corrections and modifications to maintain brand standards. Franchisees must also promote the hotel locally or regionally, subject to IHG's requirements and approvals, and avoid diverting business to competing facilities unless approved by IHG.
To fully understand the implications of being a "Group Member" and who determines this status, prospective Crowne Plaza franchisees should ask the franchisor for clarification. Specifically, they should inquire about the definition of "Group Member," the criteria for membership, any associated fees or obligations, and the process by which a franchisee is designated as a Group Member.