Can SCH and its affiliates enter into agreements with suppliers and receive revenue attributable to purchases by Crowne Plaza licensees?

According to Crowne Plaza's 2025 Franchise Disclosure Document, SCH and its affiliates can enter into agreements with suppliers and receive revenue based on purchases made by both Crowne Plaza licensees and SCH and its affiliates. This means that Crowne Plaza's parent company and its related entities may have financial arrangements with suppliers that provide goods or services to franchisees.

This arrangement could create potential benefits and conflicts of interest. On one hand, SCH's involvement might allow them to negotiate better pricing or service terms with suppliers, which could benefit franchisees. On the other hand, it's important for a prospective franchisee to understand how these arrangements are structured and whether they impact the prices paid for goods and services. Transparency is key to ensuring that franchisees are getting fair value.

It is typical in the franchise industry for franchisors to negotiate with suppliers and receive some form of compensation, as this can help offset the costs of managing the franchise system and ensuring brand consistency. However, franchisees should carefully review the FDD and ask questions to understand the details of these arrangements and how they might affect their business. Franchisees should also inquire about how Crowne Plaza ensures that the suppliers provide competitive pricing and quality products or services.