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Under what circumstances is FreedomPay not responsible for performance degradation caused by an update to the FreedomPay solution for a Crowne Plaza hotel?

Crowne_Plaza Franchise · 2025 FDD

Answer from 2025 FDD Document

Unless otherwise agreed in writing by IHG in its reasonable discretion, a FreedomPay update shall not degrade the performance, functioning or operation of the FreedomPay Solution and shall not cause the performance, functioning or operation of the FreedomPay Solution to fail to meet the requirements of this Agreement; provided, however, that the foregoing shall not apply to any FreedomPay updates that are

required by Law, network requirements, PCI requirements, acquirer requirements, or a change introduced by, any governmental authority, any regulatory body, a processor or card brand.

Source: Item 23 — Receipts (FDD pages 100–424)

What This Means (2025 FDD)

According to Crowne Plaza's 2025 Franchise Disclosure Document, FreedomPay is not responsible for performance degradation of its payment solution under specific circumstances related to updates. Generally, FreedomPay updates should not degrade the performance of the FreedomPay solution. However, this obligation does not apply to updates that are required by law, network requirements, PCI (Payment Card Industry) requirements, acquirer requirements, or changes introduced by governmental authorities, regulatory bodies, processors, or card brands.

This means that if a change in any of these external requirements necessitates an update to the FreedomPay system, and that update causes a degradation in performance, FreedomPay will not be held liable. This is a fairly standard clause to protect FreedomPay from being responsible for changes that are outside of their direct control.

For a prospective Crowne Plaza franchisee, this implies that they may experience disruptions or performance issues with the payment system due to updates, but they will not be able to hold FreedomPay accountable if these updates are driven by external mandates. It is important for franchisees to stay informed about changes in laws, network standards, and PCI requirements that could trigger such updates and to factor in potential disruptions into their business planning. Franchisees should also maintain open communication with IHG and FreedomPay to understand the reasons behind updates and any expected impact on system performance.

Disclaimer: This information is extracted from the 2025 Franchise Disclosure Document and is provided for research purposes only. It does not constitute legal or financial advice. Consult with a franchise attorney before making any investment decisions.