What was the total amount of write-offs charged against the allowance for Crowne Plaza in 2023?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
s standard introduces expedients relating to common control lease transactions, effective for financial years beginning after December 15, 2023. There has been no effect on the consolidated balance sheets, consolidated statements of net income or financial statement disclosures in future years.
Future Adoption of Accounting Standards
In December 2023, the FASB issued ASU No. 2023-09, Income taxes (Topic 740): Improvement to Income Tax disclosures. This standard enhances the transparency and decision usefulness of income tax disclosures, effective for financial years beginning after Dece
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the total amount of write-offs charged against the allowance for credit losses in 2023 was $4,127. This figure represents the actual amount of uncollectible debt that Crowne Plaza has written off during that year.
For a prospective franchisee, this indicates the level of bad debt Crowne Plaza has experienced. Write-offs are a normal part of business, but significant write-offs could indicate issues with credit policies or the financial stability of customers. It is important to note that this figure reflects write-offs at the system level and may not be directly applicable to an individual franchise location.
Franchisees should inquire about the factors contributing to these write-offs and what measures Crowne Plaza has in place to minimize bad debt. Understanding these factors can help a franchisee better manage their own credit risks and financial planning. Additionally, it would be prudent to compare this figure with industry averages to assess whether Crowne Plaza's write-off rate is within an acceptable range.