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What are the specific obligations of a Crowne Plaza franchisee regarding the maintenance of standards and specifications, as mentioned in Item 8, and how do these relate to the franchisee's obligations regarding the use of advertising materials?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

SERVICES**

Except as described below, you are not required to purchase or lease products or services from Holiday or its affiliates, or from suppliers approved by Holiday, or under Holiday's specifications.

Standards and Specifications:

You must build, design, furnish, equip, decorate and supply the hotel subject to Holiday's approval of your plans. You must equip and operate the Hotel with products which meet the Standards and specifications, including those described in the License and the Standards for the applicable Crowne Plaza Hotel brand. All modernization, renovation and upgrading of your Hotel must also meet the Standards and specifications. Holiday issues specifications by brand of product and in many instances by brand "or equivalent", by physical characteristics and by other methods, depending on the product or service involved. Holiday can make changes to the Standards. These changes will become binding on you as if originally set forth in the Standards. Any change Holiday makes must be approved by Holiday's designated internal franchise committee or subcommittee, after seeking the advice and counsel of the appropriate committee of the IHG Owners Association. Holiday will provide you with an explanation of any change, in writing, at least 30 days before it goes into effect.

Holiday estimates that the Standards and specifications will apply to 90% to 95% of your purchases and leases. If you purchase or lease any equipment or supplies not previously approved by Holiday, Holiday may require you or the manufacturer to submit a written request for its approval. Holiday reserves the right to require removal of any non-approved product installed at the Hotel. While Holiday has no obligation to respond within a certain time frame, it expects to do so within 45 to 60 days from receipt of your request. Holiday may require certain information, tests, certifications and inspections, at no expense to Holiday, as a condition of approval.

All Crowne Plaza brand group hotels must install in all guestrooms the approved bedding components that comply with the Crowne Plaza Bedding Collection. To ensure brand-wide consistency of the sleep experience, you must purchase mattresses and pillows through the approved suppliers. You must purchase the brand-mandated components (for example duvets and sheets) through the IHG approved distributors.

Under the Crowne Plaza Bulk Bath Amenity Program, all Crowne Plaza brand group hotels must install in all guestrooms the approved bath components that comply with the Guest Bathroom and Supplies and Amenities standards and the IHG Journey to Tomorrow initiative. Approved IHG suppliers have been identified for Crowne Plaza bath amenities. To ensure brand-wide consistency of quality, look and feel, you must purchase the Crowne Plaza bath amenities and bulk amenity brackets from the specified vendors. Under the Crowne Plaza Fitness Center program, all Crowne Plaza brand group hotels must install the fitness center design elements outlined in the section of the Standards regarding fitness centers. Additionally, approved equipment vendors have been identified and all equipment purchases must go through one of the three approved vendors outlined in the section of the Standards regarding fitness centers. Lastly, minimum fitness center square footage requirements which must be adhered to are also outlined in the section of the Standards regarding fitness centers. All plans must be submitted to the IHG PIP and Plan Review team at amerplanreview@ihg.com for review and approval prior to ordering any equipment or design elements.

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, franchisees have specific obligations to adhere to the brand's standards and specifications in all aspects of hotel operations, including construction, design, furnishing, and equipping the hotel. These standards are subject to change, and Crowne Plaza will provide written notice of any changes at least 30 days before they take effect. These standards and specifications are estimated to apply to 90% to 95% of a franchisee's purchases and leases.

Specifically, franchisees must build, design, furnish, equip, decorate, and supply the hotel according to Crowne Plaza's approved plans. This includes using products that meet the brand's standards and specifications, as outlined in the license and brand standards. All modernization, renovation, and upgrades must also meet these standards. For example, all Crowne Plaza hotels must install approved bedding components purchased through approved suppliers to ensure brand-wide consistency. If a franchisee purchases or leases equipment or supplies not previously approved, Crowne Plaza may require a written request for approval, potentially including tests, certifications, and inspections at the franchisee's expense. Crowne Plaza reserves the right to require the removal of any non-approved product installed at the hotel.

Regarding advertising, Crowne Plaza franchisees may conduct local and regional marketing programs at their own expense, but these activities are subject to Crowne Plaza's requirements, including the proper use of trademarks. Crowne Plaza may charge for optional advertising materials ordered or used for these programs. Furthermore, all Crowne Plaza hotels must participate in the CP-HMA (Crowne Plaza Hotels and Resorts in the Americas), which develops and implements programs for the direct benefit of Crowne Plaza hotels.

In summary, maintaining brand standards is critical for Crowne Plaza franchisees, impacting everything from hotel construction and furnishing to marketing and advertising efforts. Franchisees need to stay informed about changes to the standards and ensure compliance in all areas of operation to maintain brand consistency and avoid potential penalties.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.