Under what circumstances might Holiday elect to reduce the initial fees for a Crowne Plaza franchise?

According to Crowne Plaza's 2025 Franchise Disclosure Document, Holiday may elect to reduce the initial fees for a franchise under certain circumstances. While the standard initial fees are generally applied uniformly, Holiday has the discretion to reduce a fee after considering specific criteria. These criteria include the number of hotels within the Brand System that the licensee operates and the market position of the hotel. This suggests that franchisees who already have a significant presence within the Crowne Plaza system or those whose hotels occupy a strong position in their respective markets may be eligible for a reduction in initial fees.

In limited situations, Holiday may also negotiate or waive some of the initial fees. However, the FDD emphasizes that Holiday is not obligated to do so. This implies that any negotiation or waiver of fees is at Holiday's sole discretion and is not guaranteed. Prospective franchisees should not assume that they will automatically receive a reduction in fees, even if they meet certain criteria. Instead, they should be prepared to pay the standard initial fees as outlined in the FDD.

It is important for potential Crowne Plaza franchisees to understand that all fees are fully earned upon receipt and are generally non-refundable, except as otherwise stated in the FDD. This means that once a franchisee pays an initial fee, they typically cannot get a refund, even if the franchise agreement is terminated or the hotel does not open. Therefore, franchisees should carefully consider their financial situation and the terms of the franchise agreement before paying any initial fees. Understanding the conditions under which Holiday may reduce fees can be a valuable point of negotiation for prospective franchisees.