Under what condition might First Data modify the Servicers Fees for a Crowne Plaza client?

According to the 2025 Crowne Plaza FDD, First Data may modify the Servicers Fees if a client materially changes their business methods or the types of transactions they submit for processing. This condition is outlined in the MPA Addendum for New Properties, which details the agreement between FDS Holdings, Inc. (First Data), Bank of America, N.A., and the Crowne Plaza client.

This means that if a Crowne Plaza franchisee alters how they conduct business, such as introducing new payment methods or significantly changing the volume or nature of transactions, First Data reserves the right to adjust the fees charged for their services. These fees, known as Servicers Fees, are what the client pays First Data for processing services.

For a prospective Crowne Plaza franchisee, this highlights the importance of accurately disclosing business methods and transaction types to First Data during the application process. Any significant deviation from these disclosed methods could lead to a modification of the Servicers Fees. Franchisees should maintain open communication with First Data regarding any planned changes to their business operations to avoid unexpected fee adjustments.

It is also important to note that the agreement between First Data, Bank of America, and the Crowne Plaza client is independent of the IHG Agreement. This means that any changes or modifications to the Servicers Fees do not affect the IHG Agreement, and IHG does not have any liability to Servicers for the client's performance or nonperformance under the agreement.