Under what conditions might additional royalties be charged on revenues from any activity at a Crowne Plaza Hotel?

According to the 2025 Crowne Plaza Franchise Disclosure Document, additional royalties may be charged on revenues from any activity added at a Crowne Plaza hotel under specific conditions. These conditions apply if the activity is introduced to the hotel by mutual agreement between the franchisee and Crowne Plaza, and if the activity is not generally offered at other Brand System hotels. Alternatively, additional royalties may be charged if the activity is specifically designed or developed by or for IHG (InterContinental Hotels Group) or its affiliates.

This means that if a Crowne Plaza franchisee and IHG agree to introduce a new revenue-generating activity at the hotel that is not a standard offering across the Crowne Plaza system, the franchisee may be subject to additional royalty fees on the revenues generated from that activity. This could include new services, amenities, or programs that are unique to the specific hotel or are created by IHG. The standard monthly Royalty Fee, as detailed in Item 4 of Attachment A, covers the franchise rights but not necessarily these novel revenue streams.

For a prospective Crowne Plaza franchisee, this highlights the importance of understanding the scope of the standard Royalty Fee and the potential for additional fees based on new activities. It would be prudent to discuss with IHG what types of activities might trigger additional royalties and how those royalties would be calculated. This ensures clarity and avoids unexpected costs as the franchisee innovates and seeks to enhance revenue streams at their Crowne Plaza location. Franchisees should also clarify whether IHG-driven initiatives that generate revenue will incur additional royalty fees.