Who is responsible for the expenses associated with an audit of a Crowne Plaza hotel's compliance with the Master Technology Schedule?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
12.1 During the License Term and for a period of two years following any expiration or termination of the License, IHG or its designated representative may enter upon the premises of the Hotel during regular business hours upon no less than twenty-four (24) hours' notice to audit and review Licensee's (i) use of the Curated Solutions; (ii) verify compliance with the License and the Enabling Agreements; and (iii) ensure compliance with applicable laws and Security Practices. Licensee will cooperate with any such audit at Licensee's expense. Any fees or amounts determined to be due, or any remedial action to be undertaken, as a result of Licensee's audited use of the Curated Solutions or Security Practices not in compliance with this Master Technology Schedule shall be the sole responsibility of Licensee. Nothing in this Section shall be deemed to limit IHG's rights to perform monitoring of the Curated Solutions at any time.
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 the expenses associated with audits to verify compliance with the Master Technology Schedule. Specifically, IHG (the franchisor) or its representative can audit the Licensee's use of Curated Solutions, compliance with the license and agreements, and adherence to laws and security practices.
The Licensee must cooperate with these audits at their own expense. This means the franchisee will bear the financial burden of providing the necessary information and access for IHG to conduct the audit. Furthermore, if the audit reveals any fees or amounts due because of non-compliance with the Master Technology Schedule, the Licensee is solely responsible for these as well.
This arrangement places the onus on the Crowne Plaza franchisee to ensure they are following all technology-related requirements and security protocols. Failure to do so not only results in having to rectify any issues, but also covers the cost of the audit that revealed the non-compliance. This encourages franchisees to proactively maintain compliance to avoid these additional expenses.