When does the Crowne Plaza agreement become effective?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
This Agreement will become effective when signed by an authorized representative of each of Company and Customer (the "Agreement Effective Date"). The "Term Effective Date" will be January 1, 2020, provided this Agreement is signed on or before September 30, 2020; or (ii) if this Agreement is signed after September 30, 2020, the Term Effective Date will be the first day of the month in which this Agreement is signed by Customer. The term of the Agreement will continue from the Term Effective Date until the expiration or earlier termination of the beverage marketing agreement between Company and Six Continents Hotels, Inc. dated January 1, 2020 (the "Term").
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the agreement becomes effective when it is signed by an authorized representative of both the company and the customer. The document refers to this as the "Agreement Effective Date."
However, the "Term Effective Date" is defined separately and depends on when the agreement is signed. If the agreement is signed on or before September 30, 2020, the Term Effective Date is January 1, 2020. If the agreement is signed after September 30, 2020, the Term Effective Date will be the first day of the month in which the agreement is signed by the customer.
This distinction between the Agreement Effective Date and the Term Effective Date is important for Crowne Plaza franchisees to understand, as it affects the duration and specific terms of the agreement. The term of the agreement continues from the Term Effective Date until the expiration or earlier termination of the beverage marketing agreement between the company and Six Continents Hotels, Inc., dated January 1, 2020.