What is the 'Application' referring to in the Crowne Plaza agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Maryland:
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- In accordance with the provision under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- Section 13.I of the License is amended to include the following: "The general release language contained in the License shall not relieve IHG or any other person, directly or indirectly, from liability imposed by the laws concerning franchising in the State of Maryland."
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- The provisions of the License which permits all suits to be filed in Georgia is hereby deleted for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.
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- Any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three years after the grant of the License.
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- Pursuant to the Interpretive Opinion "Adopting NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments" dated January 23, 2023 (the "Interpretive Opinion"), issued by the State of Maryland Office of the Attorney General Securities Division (the "Division"), the Division requires franchisors selling franchises that are subject to the Maryland Franchise Registration and Disclosure Law to include the following statement in their franchise agreements: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." Accordingly, any statement, questionnaire, or acknowledgment in the License Agreement that is not permitted under the Interpretive Opinion is deleted in its entirety and shall have no force or effect.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the term "Application" does not appear to be explicitly defined within the provided excerpts. However, several amendments to the Crowne Plaza License Agreement refer to legal provisions and statutes, particularly in relation to specific states such as Maryland, Rhode Island, North Dakota, Washington, California, and Hawaii.
Given the context of franchise agreements and amendments, it is likely that "Application" refers to the initial request and associated documentation submitted by a prospective franchisee to Crowne Plaza to be considered for a franchise license. This would typically include detailed information about the applicant's financial background, business experience, and proposed location for the hotel. The franchisor reviews this application to determine if the applicant meets their criteria for awarding a franchise.
To fully understand the specific meaning of "Application" within the Crowne Plaza franchise agreement, a prospective franchisee should seek clarification from the franchisor. Specifically, they should inquire about what documents and information constitute the Application, the process for submitting it, and the criteria used by Crowne Plaza to evaluate applications. This will ensure a clear understanding of the initial steps required to become a Crowne Plaza franchisee.