When is the Crowne Plaza Royalty fee due?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| TYPE OF FEE | |||
|---|---|---|---|
| Royalty | 5% of Gross Rooms Revenue (“GRR”) | Monthly, on the 15th of the following month (Payable to Holiday) | Note 1 |
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the royalty fee is due monthly, specifically on the 15th of the following month. This royalty is calculated as 5% of the Gross Rooms Revenue (GRR). The payment is made to Holiday, which is likely a reference to one of the IHG entities involved in the franchise agreement.
This monthly payment schedule is a standard practice in the franchise industry, allowing Crowne Plaza to collect royalties regularly based on the franchisee's ongoing revenue. Franchisees need to ensure they have systems in place to accurately track and report Gross Rooms Revenue to facilitate timely royalty payments. Failing to make these payments on time could result in penalties or even a breach of the franchise agreement.
In addition to the royalty fee, Crowne Plaza franchisees also pay other fees such as a Services Contribution (3% of GRR), which is due at the same time as the royalty fee. Franchisees should carefully review all the fees outlined in the FDD to understand their financial obligations to Crowne Plaza.