According to the Crowne Plaza FDD, what document is the Guaranty attached to?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section In | Item in | |
|---|---|---|---|
| Agreement | Disclosure Document | ||
| z. Other: Guaranty | Attached to the License | Item 15 |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 69–81)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the Guaranty is attached to the License agreement. This means that if a third party, such as an individual or another company, is guaranteeing the franchisee's obligations under the License agreement, the document outlining that guarantee is legally connected to the main franchise agreement.
For a prospective Crowne Plaza franchisee, this is important because it clarifies where to find the specific terms and conditions of the Guaranty. If the franchisee's obligations are being guaranteed by another party, the details of that guarantee will be included as part of the License agreement.
This arrangement is fairly standard in franchising, especially when the franchisee is a newly formed entity or lacks a substantial operating history. The franchisor, in this case Crowne Plaza, seeks assurance that the franchisee's financial and contractual obligations will be met, and a Guaranty attached to the License provides that security.