What is the transaction fee that a Crowne Plaza hotel will pay IHG per transaction?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Hotel acknowledges that IHG and FreedomPay have entered into the Secure Payment Solution Agreement (the "SPS Agreement"), effective as of July ___, 2021. The SPS Agreement provides that an IHG-branded hotel or service company to such a hotel may, upon execution of a Participation Agreement, receive the benefit of the Secure Payment Solution services agreed by IHG and FreedomPay.
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- FreedomPay Services. FreedomPay will provide services in accordance with the terms of this Participation Agreement, including the FreedomPay Pass-Through Terms set forth on Attachment 1, which Hotel expressly agrees to and accepts.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a Crowne Plaza hotel will pay IHG a transaction fee of $0.06 per transaction. The FDD specifies that a 'transaction' includes each of the following: an on-line authorization request, a captured request without a corresponding on-line authorization (such as verbal authorizations or offline requests), a return request, and a void request.
This fee is typically collected by the merchant service provider as part of the settlement reconciliation process. IHG retains the right to lower this transaction fee but explicitly states they will not increase it, providing a potential benefit to the franchisee if IHG decides to reduce the fee.
In addition to the transaction fee, the Crowne Plaza hotel will also pay IHG a support fee of $140 per month. Understanding these fees is crucial for a prospective franchisee to accurately forecast operating costs and assess the financial viability of the franchise. Franchisees should also be aware of potential additional fees or modifications to existing fees, as outlined in the FDD.