Under what circumstances might AT&T require a Crowne Plaza franchisee to tender a deposit?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
AT&T may require Eligible Participant or its Affiliates to tender a deposit if AT&T determines, in its reasonable judgment, that Eligible Participant or its Affiliates are not creditworthy, and AT&T may apply such deposit to any charges owed.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, AT&T may require a deposit from an eligible participant or its affiliates if AT&T determines, in its reasonable judgment, that they are not creditworthy. This deposit can be applied to any charges owed to AT&T.
This means that if a prospective Crowne Plaza franchisee seeks services from AT&T, AT&T has the right to assess their creditworthiness. If AT&T deems the franchisee or its affiliates to be a credit risk, they can demand a deposit to secure payment for services rendered. This is a protective measure for AT&T to mitigate potential financial losses.
It is important for potential Crowne Plaza franchisees to understand that this deposit could be required in addition to other fees and investments associated with starting the franchise. Franchisees should maintain good credit standing to avoid such requirements. Furthermore, franchisees should clarify with AT&T the specific criteria used to determine creditworthiness and the amount of the deposit that may be required.