Under what circumstances does Holiday require Crowne Plaza franchisees to purchase equipment, furnishings, supplies, or other products from a designated or approved supplier?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
If Holiday requires you to purchase equipment, furnishings, supplies or other products for the Hotel from a designated or approved supplier or service provider in the License, the Standards, or other communication to you, then you must purchase the mandated product unless you receive prior approval from Holiday to purchase such products from another source whose products meet such specifications. Holiday can designate the type and brand of products to be used at your Hotel to comply with the Standards.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, franchisees are generally not required to purchase or lease products or services from Holiday or its affiliates, or from approved suppliers, unless specifically stated. However, there are several key exceptions to this general rule. Franchisees must adhere to Holiday's standards and specifications when building, designing, furnishing, equipping, decorating, and supplying the hotel, which may require purchasing from approved sources. These standards apply to 90% to 95% of purchases and leases. Holiday can change these standards, with changes becoming binding 30 days after written notice.
Specifically, all Crowne Plaza hotels must install approved bedding components, purchasing mattresses and pillows through approved suppliers and brand-mandated components through IHG-approved distributors. Similarly, the Crowne Plaza Bulk Bath Amenity Program mandates the purchase of approved bath amenities and bulk amenity brackets from specified vendors to ensure brand-wide consistency. For fitness centers, franchisees must install design elements outlined in the Standards, purchasing equipment through one of the three approved vendors.
Furthermore, Crowne Plaza franchisees are required to operate a computerized property management system (PMS) certified by SCH, maintaining it in conformance with SCH standards. Franchisees must license the Opera PMS solution from Oracle America, Inc. to interface with the Reservation System. The PMS hardware and software must be replaced at least every 48 months. Holiday may also designate designers, architects, contractors, and suppliers for Renewal Work and brand refresh work, requiring franchisees to use brand-specified products from these sources. Additionally, the total signage package, including the primary sign, must be purchased from a Holiday-approved sign vendor, with only approved sign suppliers authorized to manufacture and install exterior signs.