What is the Technology Services Fee per guest room at a Crowne Plaza Hotel?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (5) Technology Services Fee. A monthly Technology Services Fee as set forth in Item 6 of Attachment "A" and any other fees as set out in the Master Technology Services Schedule in Attachment "D" hereto. The Technology Services Fee will be used by IHG to cover costs and investments that, in IHG's sole discretion, support the development and maintenance of IHG's technology systems. The Technology Services Fee may be increased in IHG's reasonable discretion, but in no case shall any such increase in any calendar year exceed 10% of the fee in effect at the beginning of that year. The Technology Services Fee does not include the cost, installation, maintenance or repair of any technology equipment at the Hotel.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, franchisees must pay a monthly Technology Services Fee, the amount of which is detailed in Item 6 of Attachment "A". This fee is used by IHG to support the development and maintenance of its technology systems. The FDD specifies that IHG has the discretion to increase this fee, but any increase is capped at 10% of the fee in effect at the beginning of that calendar year.
It is important to note that the Technology Services Fee covers IHG's costs and investments in technology systems but does not include the cost, installation, maintenance, or repair of any technology equipment at the franchisee's hotel. This means that franchisees are responsible for these additional technology-related expenses.
While the FDD mentions that the specific amount of the Technology Services Fee is found in Item 6 of Attachment A, it does not provide the actual dollar amount or calculation method (e.g., per guest room). A prospective Crowne Plaza franchisee should carefully review Attachment A of the FDD and ask the franchisor for clarification on the current Technology Services Fee and how it is calculated to fully understand this ongoing expense.