To whom is the Royalty fee payable for a Crowne Plaza franchise?
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 Crowne Plaza's 2025 Franchise Disclosure Document, the royalty fee is payable to Holiday. The royalty fee is 5% of Gross Rooms Revenue (GRR). This fee is paid monthly, specifically on the 15th of the following month.
In practical terms, this means that as a Crowne Plaza franchisee, you will be required to remit 5% of your hotel's gross rooms revenue to Holiday each month. This payment is due by the 15th of the subsequent month, giving you a short window to calculate and submit the payment. Gross Rooms Revenue is a standard metric in the hotel industry, generally referring to the total revenue generated from room rentals before deductions for expenses.
It is important for prospective franchisees to factor this ongoing royalty fee into their financial projections. Failing to remit royalty payments can result in penalties, legal action, or even termination of the franchise agreement. Franchisees should also be aware of other fees payable to Holiday, such as the Comfort Letter Processing Fee, the Application Fee, and Property Improvement Plan fees.