Is the use of NGP or a successor payments program required for all Crowne Plaza hotels?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Upon activation of the NGP program at your Hotel, you will enter into a Next-Gen Payment Agreement with SCH (See Exhibit G-4). SCH will immediately bill you monthly and administer support for the hardware and software. All Hotels are required to use NGP or such successor payments program as may be implemented by SCH. Pursuant to the terms of the Next-Gen Payment Agreement, licensee will be liable for payment to IHG of an early termination fee for any reason equal to (x) 50% of the NGP monthly fee, multiplied by (y) the remaining monthly payments in the term.
Each licensee will be required to enter into a merchant processing application and agreement with Fiserv, the SCH-approved merchant service provider, and a participation agreement with SCH (see Exhibit G-4). Your monthly NGP fee may increase according to the terms of the NGP agreement signed at install (no more than a 5% increase from your original quoted rate), based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, all hotels are required to use the Next-Gen Solutions (NGP) program or any successor payments program implemented by SCH (presumably, Six Continents Hotels, Inc.). Upon activation of the NGP program, the franchisee will enter into a Next-Gen Payment Agreement with SCH and will be billed monthly for hardware and software support.
This requirement means that a Crowne Plaza franchisee must adopt the payment processing system mandated by the franchisor. This ensures consistency across the brand in payment handling and potentially allows for integrated data collection and reporting. However, it also means the franchisee cannot choose their own payment processing system, even if they find a more cost-effective or feature-rich alternative.
Furthermore, the franchisee is liable for an early termination fee if they discontinue the NGP agreement for any reason. This fee is calculated as 50% of the NGP monthly fee, multiplied by the remaining months in the term. This early termination fee could represent a significant financial obligation if a franchisee wishes to switch payment systems or terminate the franchise agreement early. The monthly NGP fee may also increase, but no more than 5% from the original quoted rate, based on increases in costs incurred by SCH to provide the service. The exact amount of the fee will be defined on the quote received prior to installation.