Is the right to use the Next-Gen Payments Solution granted to Crowne Plaza hotels transferable?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 2.2 Right to Use the Next-Gen Payments Solution.
During the Term, IHG hereby grants Hotel a limited, personal, revocable, nonexclusive, and non-transferable right to access and use the Next-Gen Payments Solution solely for the internal business purposes of Hotel and subject to the terms of this Agreement, including the Third Party Terms.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the right to use the Next-Gen Payments Solution is explicitly non-transferable. IHG grants Crowne Plaza hotels a limited right to access and use this solution. This right is specifically defined as personal, revocable, nonexclusive, and non-transferable. This means a Crowne Plaza franchisee cannot transfer this right to another party.
This restriction has significant implications for a franchisee. If a franchisee sells their Crowne Plaza hotel, the new owner will need to obtain their own separate agreement with IHG to use the Next-Gen Payments Solution. The existing franchisee cannot simply transfer their right to use the solution to the new owner as part of the sale.
The non-transferable nature of the Next-Gen Payments Solution is a standard practice in franchising. Franchisors typically maintain control over their systems and technologies to ensure consistency and quality across all locations. This allows Crowne Plaza to manage updates, security, and compliance with payment processing standards effectively. This also ensures that each franchisee is individually accountable for adhering to the terms and conditions associated with the payment solution.