When is the Crowne Plaza Royalty fee payment 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 |
| Services Contribution | 3% of GRR | Same as Royalty | Note 2 |
| Initial Marketing Contribution for the Loyalty Program | $10.00 per approved guest room. | At same time as 1st Royalty Payment (one-time charge) (Payable to SCH) | Note 3 |
| Loyalty Program Contribution | 4.55% of Qualifying Full Folio Revenue from Loyalty Program members 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members | Same date as Royalty (Payable to SCH) | Note 3 |
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 IHG's Holiday Inn brand, given IHG's overall brand structure.
In practical terms, this means that if a Crowne Plaza hotel generates revenue in January, the 5% royalty payment based on that revenue is due on February 15th. This consistent monthly payment schedule impacts the franchisee's cash flow management, requiring them to allocate funds regularly for this expense. Franchisees need to ensure their accounting systems are set up to accurately track Gross Rooms Revenue and schedule timely payments to avoid late fees or potential breaches of the franchise agreement.
In addition to the royalty fee, Crowne Plaza franchisees also pay other fees on the same date as the royalty payment, including the Services Contribution, which is 3% of GRR, and the Loyalty Program Contribution, which is 4.55% of Qualifying Full Folio Revenue from Loyalty Program members and 1.365% of GRR on Qualifying Room and Meeting Revenue from Loyalty Program members. These additional fees, all due on the 15th of the following month, further emphasize the importance of diligent financial planning and revenue tracking for Crowne Plaza franchisees.