According to the Crowne Plaza license agreement, what constitutes a 'Transfer'?

According to the 2025 Crowne Plaza Franchise Disclosure Document, a transfer, specifically an 'Unauthorized Transfer,' occurs under certain conditions related to changes in ownership. If a prospective new owner of a Crowne Plaza hotel (or equity interest in the hotel or the licensee) does not submit a change of ownership application to IHG (InterContinental Hotels Group) or if IHG does not approve a submitted application, then the conveyance of the hotel, hotel site, or any equity interest to the proposed new owner is considered an unauthorized transfer.

This unauthorized transfer is a significant issue, as Crowne Plaza views it as a material breach of the license agreement. Furthermore, Crowne Plaza considers it an abandonment of the franchise by the licensee. This means that failing to obtain IHG's approval before transferring ownership can have severe consequences for the franchisee.

For a prospective Crowne Plaza franchisee, this highlights the importance of adhering to the franchisor's procedures for any ownership changes. It is crucial to understand and follow the required application process and approval criteria set by IHG to avoid being in material breach of the license agreement. This also underscores the need for clear communication and cooperation with IHG throughout the process of any potential transfer of ownership.