What warranty does Holiday provide to Crowne Plaza franchisees when identifying or recommending a supplier or service provider?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
In furnishing supplier or service provider information and making recommendations, Holiday uses its business judgment regarding the long-term interests of the Brand System as a whole, based on its information at that time concerning quality, performance, competitive pricing and similar factors. However, by identifying or recommending a supplier or service provider, Holiday makes no warranty to you of these or any other factors. Your use of an identified or recommended supplier or service provider, selling products or services meeting the Standards and specifications may make it easier for you to comply with the Standards and specifications, but it is not a substitute for compliance.
While Holiday may, from time to time, communicate with you or your suppliers/service providers regarding supply/service provider issues and take steps to improve performance or resolve complaints, Holiday has no responsibility for the financial condition or performance of any supplier or service provider.
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, Holiday does not provide any warranty to franchisees regarding the quality, performance, pricing, or other factors related to suppliers or service providers they identify or recommend. While Holiday uses its business judgment to assess suppliers based on the long-term interests of the brand, this does not constitute a warranty.
This means that Crowne Plaza franchisees bear the full responsibility for evaluating and selecting suppliers, even from Holiday's recommended list. Franchisees cannot hold Holiday liable if a recommended supplier fails to meet their expectations or causes financial losses. It is crucial for franchisees to conduct their own due diligence and not rely solely on Holiday's recommendations.
Although using approved or recommended suppliers may help a Crowne Plaza franchisee meet brand standards, it does not guarantee compliance, and it does not substitute for the franchisee's own responsibility to ensure standards are met. Holiday may communicate with suppliers to improve performance or resolve complaints, but they are not responsible for the supplier's financial stability or performance.
This lack of warranty is a common practice in franchising, where franchisors often provide guidance but do not assume liability for third-party vendors. Prospective Crowne Plaza franchisees should carefully consider this when budgeting and planning their operations, ensuring they have sufficient resources to manage supplier relationships and mitigate potential risks.