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What are the specific standards and specifications that a Crowne Plaza franchisee must adhere to, as mentioned in Item 8, and how do these relate to the franchisee's obligations regarding construction and design?

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.

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. Any design work submitted by unqualified individuals hired by you will be rejected and your Hotel can be subject to Plan default, resulting in an assessment of fees under the

What This Means (2025 FDD)

According to the 2025 Crowne Plaza FDD, franchisees must adhere to specific standards and specifications related to the construction and design of their hotels. These standards require franchisees to build, design, furnish, equip, decorate, and supply the hotel according to Crowne Plaza's approved plans. All modernization, renovation, and upgrades must also meet these standards. Holiday, the franchisor, issues specifications by brand of product, often allowing for "or equivalent" options, and can make changes to these standards, which become binding on the franchisee after a 30-day written notice.

The standards and specifications apply to an estimated 90% to 95% of a franchisee's purchases and leases. If a franchisee wishes to use equipment or supplies not previously approved, they must seek approval from Holiday, which may require tests, certifications, and inspections at the franchisee's expense. Crowne Plaza also mandates specific programs like the Crowne Plaza Bedding Collection, requiring franchisees to purchase mattresses and pillows from approved suppliers to ensure brand-wide consistency. Similarly, the Crowne Plaza Bulk Bath Amenity Program requires the use of approved bath components and amenity brackets from specified vendors.

For construction and renovation, Crowne Plaza requires franchisees to hire qualified, licensed, professional advisors with hotel experience, forming a project team that includes an interior designer and potentially an architect, engineer, or other specialists. All architects and interior designers must be approved by Holiday before the project commences. Submitting design work from unqualified individuals can result in a Plan default, with fees up to $5,000. Furthermore, franchisees may be required to remove any product installed without explicit written approval from IHG. Franchisees must also submit plans to the IHG PIP and Plan Review team for approval before ordering any equipment or design elements, particularly for fitness centers, which have specific design elements, approved equipment vendors, and minimum square footage requirements.

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.