When does the 'Walkthrough' between the Participating Property and Supplier occur under the IHG Direct Participation Agreement for Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- c. For the purposes of this Participation Agreement, "Customer Not Ready" or "CNR" is defined as when the Participating Property's demarcation point (i) is not reasonably available or otherwise ready for fiber delivery from the Supplier; (ii) is still under construction; (iii) does not have permanent power sources; (iv) secured with a door and lock; or (v) does not have fiber panel or rack unit ready in the location previously communicated to IHG or to the Supplier. The location of fiber panel or rack unit described in (v) shall be determined at the time when the Participating Property and Supplier perform a walkthrough on the site of the Participating Property prior to any work that the Supplier performs ("Walkthrough") in connection with this Participation Agreement. Any fee assessed by the Supplier in connection with a CNR situation shall be paid promptly and in full by the Participating Property.
- d. Furthermore, in the event that the Participating Property's demarcation point is moved from the location agreed to by the Participating Property and the Supplier during the Walkthrough, any request to change or move the location of the demarcation point may result in a direct charge to the Participating Property to cover any and all additional capital expenditure expenses arising from any additional construction. Participating Property shall promptly and in full pay such direct charge to IHG when due.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the 'Walkthrough' between the Participating Property (the franchisee) and the Supplier takes place on the site of the Participating Property before any work is performed by the Supplier in connection with the IHG Direct Participation Agreement. The purpose of this walkthrough is to determine the location of the fiber panel or rack unit.
This walkthrough is important because any changes to the agreed-upon location of the demarcation point after the walkthrough may result in direct charges to the Participating Property to cover additional construction expenses. These expenses must be paid promptly and in full to IHG when due.
Furthermore, if the Participating Property's demarcation point is not reasonably available or ready for fiber delivery from the Supplier, or if other conditions exist such as the site still being under construction or lacking permanent power sources, it may be classified as "Customer Not Ready" (CNR). Any fees assessed by the Supplier due to a CNR situation must be paid promptly and in full by the Participating Property.