Under what condition can Crowne Plaza's Affiliates be invoiced separately?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
IHG may, at its election at any time during the License Term, require Licensee to pay all outstanding fees by electronic funds transfer, direct account debit, ACH or other similar technology designed to accomplish the same purpose as may be designated by IHG. If IHG requires Licensee to make payments by any of the foregoing methods, Licensee agrees to make its payment in compliance with those
requirements and also to deposit and maintain at all times sufficient funds to cover all fees and payments that Licensee owes to IHG and its Affiliates in a segregated bank account that Licensee establishes and maintains for the Hotel.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, IHG (InterContinental Hotels Group) has the option to invoice the franchisee's outstanding fees through its affiliates at any point during the license term. This means that entities related to IHG can directly bill the franchisee for any amounts owed.
To ensure timely payments, Crowne Plaza may require franchisees to use electronic funds transfer, direct account debit, ACH, or similar technologies. If Crowne Plaza mandates these payment methods, the franchisee must comply and maintain sufficient funds in a segregated bank account specifically for covering fees and payments to IHG and its affiliates. This account must be established and maintained by the franchisee for the hotel's operations.
This arrangement provides Crowne Plaza with flexibility in managing its revenue collection and potentially streamlines the payment process. However, it also places a responsibility on the franchisee to ensure funds are always available and to adhere to the specified payment methods to avoid any breach of the license agreement or incurring interest on unpaid amounts.