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 computer systems?
Crowne_Plaza Franchise · 2025 FDDAnswer 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.
Holiday requires you to hire qualified, licensed, professional advisors with hotel experience in the form of a project team, which must consist of an interior designer with upscale hotel brand experience and may, depending on complexity and scope of the work, also consist of an architect, engineer, art consultant, lighting consultant, or other related specialist when building or renovating a Crowne Plaza hotel. If you cannot find such licensed professional help, contact your Openings Regional Director. All architects and interior designers must be approved by Holiday prior to the project commencing.
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, franchisees have specific obligations to maintain the brand's standards and specifications, which extend to the use of computer systems. Franchisees must build, design, furnish, equip, decorate, and supply their hotel according to Holiday's (IHG) approved plans. This includes operating the hotel with products that meet the brand's standards and specifications, as detailed in the license and brand standards. All modernization, renovation, and upgrades must also adhere to these standards. These standards and specifications are subject to change, and any changes made by Holiday will become binding on the franchisee, provided they are approved by Holiday's internal franchise committee and after seeking advice from the IHG Owners Association. Franchisees will receive written notice of these changes at least 30 days before they take effect.
The FDD indicates that these standards apply to a significant portion of a franchisee's purchases and leases, estimated to be 90% to 95%. If a franchisee wishes to purchase or lease equipment or supplies not previously approved, they or the manufacturer must submit a written request for approval. Crowne Plaza reserves the right to require the removal of any non-approved product installed at the hotel. The approval process may involve providing information, tests, certifications, and inspections, all at the franchisee's expense. A specific example is the requirement for all Crowne Plaza hotels to install approved bedding components, with mattresses and pillows purchased through approved suppliers and brand-mandated components purchased through IHG-approved distributors.
Regarding computer systems, Crowne Plaza hotels are currently required to use the Opera property management system (PMS). Franchisees must install only computers, components, peripheral devices, and equipment meeting SCH's (another entity within IHG) specifications for the PMS and Reservation System. While franchisees can obtain the hardware from SCH or any third-party vendor that meets SCH's specifications, they must periodically upgrade the equipment to accommodate enhanced versions of the PMS, as outlined in the Master Technology Services Agreement. SCH will provide or arrange for training and implementation support, and franchisees will be billed for these services. The PMS provides a computerized front desk operation designed to increase speed and productivity of front desk operational tasks.
In summary, maintaining Crowne Plaza's standards and specifications is a critical obligation for franchisees, impacting everything from hotel construction and furnishing to the technology systems used in operations. Franchisees must adhere to approved plans, use approved suppliers, and stay updated with any changes to the standards. For computer systems like the Opera PMS, franchisees must use specified hardware, undergo required training, and participate in periodic upgrades to maintain brand consistency and operational efficiency.