What term in years was used for the Crowne Plaza valuation model?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
, Wisconsin 53703
EXHIBIT E1-1
EXHIBIT E1 LIST OF FRANCHISEES OPERATING AS OF DECEMBER 31, 2024
| Binomial | and Finnerty | |
|---|---|---|
| 2024 valuation model | ||
| Weighted-average share price (British pence) | 8,364.5 | 7,940.0 |
Crowne Plaza FDD - 4-15-25 (198)
| - | 4.20% | |
|---|---|---|
| Risk-free interest rate | ||
| Volatility(i) | - | 26.0% |
| Term (years) | 2.5 | 3.0 |
| 2023 valuation model | ||
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the term used in years for the 2022 valuation model was 2.6 and 2.8. For the 2023 valuation model, the term used was 2.5 and 3.0 years.
These figures represent the time horizon used in the financial models to estimate the value of the Crowne Plaza business. Prospective franchisees should understand that these terms are key assumptions that can significantly impact the valuation results. A longer term might suggest a more optimistic long-term outlook, while a shorter term could reflect a more conservative approach or higher perceived risk.
Understanding the specific assumptions and methodologies used in these valuation models is crucial for potential franchisees. It allows them to assess the reasonableness of the projections and the potential return on investment. Franchisees should inquire about the factors that influence the term length and how changes in these factors could affect the overall valuation and financial performance of a Crowne Plaza franchise.