Is assigning the Crowne Plaza Agreement a prohibited action?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
or requiring a general release, in exchange for any assistance related to a declared state or federal emergency.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
| Date: | | | |--------------------------------------------------------------|------------------------------------------------------------------------------|--| | Licensee: | | | | «EntityAllCaps» | By: «AuthorizedSignee» «SigneesTitle» | | | IHG: | | | | HOLIDAY HOSPITALITY FRANCHISING, LLC | | | | By: Six Continents Hotels, Inc., | | | | its sole managing member | By: Jenny Tidwell Vice President Franchise Licensing and Compliance | | California Amendment
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To Section 482E-3 of Hawaii Revised Statutes
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provision shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Hawaii:
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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 Hawaii."
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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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- Hawaii Revised Statutes Section 482E-1 provides rights to the Licensee concerning termination or non-renewal of a License. If the License contains a provision that is inconsistent with the law, the law will control.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
| Licensee: | |
|---|---|
| «EntityAllCaps» | |
| By: | |
| «AuthorizedSignee» | |
| «SigneesTitle» | |
| IHG: | |
| HOLIDAY HOSPITALITY FRANCHISING, LLC | |
| By: | Six Continents Hotels, Inc., |
| its sole managing member | |
| By: | |
| Jenny Tidwell | |
| Vice President | |
| Franchise Licensing and Compliance |
Date: __________
Hawaii Amendment
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Maryland Franchise Registration And Disclosure Law
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.
| Lease costs for the years ended December 31, 2024, 2023 and 2022 were (in thousands): | ||
|---|---|---|
| Operating lease expense for fixed payments | $ 10,959 $ 11,451 $ 11,926 | |
| Variable lease expense | 543 528 344 | |
| Short-term lease cost | 197 574 151 | |
| Sub-lease income | (3,428) (2,967) (2,275) | |
| Sub-lease interest income | (393) (118) - | |
| Finance lease expense: | ||
| Depreciation of assets | 3,657 3,657 3,658 | |
| Interest on lease liabilities | 23,205 23,021 22,854 |
IHG:
HOLIDAY HOSPITALITY FRANCHISING, LLC
| Less amount representing interest | (11,225) |
|---|---|
| Present value of net minimum lease payments | $ 84,195 |
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The North Dakota Investment Franchise Law
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 North Dakota:
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- The laws of the State of North Dakota supersede any provisions of the License, or Georgia law, if such provisions are in conflict with such North Dakota laws.
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- Liquidated damages and termination penalty provisions are deleted from the License Agreement to the extent they are prohibited by the laws of the State of North Dakota.
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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 of the State of North Dakota."
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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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- Any provision in the License which designates jurisdiction or venue or requires the Licensee to agree to jurisdiction or venue, in a forum outside of North Dakota, is deleted from Licenses issued in the State of North Dakota. The site of any arbitration will be agreeable to all parties.
| Date: | ||
|---|---|---|
| Licensee: | «EntityAllCaps» By: «AuthorizedSignee» «SigneesTitle» | |
| IHG: | HOLIDAY HOSPITALITY FRANCHISING, LLC | |
| By: Six Continents Hotels, Inc., | ||
| its sole managing member | By: Jenny Tidwell Vice President Franchise Licensing and Compliance |
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Rhode Island Franchise And Distributorship Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for a Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Rhode Island:
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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 19-28.14 of the Rhode Island Franchise Investment Act provides that: "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." This provision will also apply to the Guaranty.
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- Any provision in the License which designates the governing law as that of any state other than the State of Rhode Island is deleted from Licenses issued in the State of Rhode Island.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
| Net minimum lease payments | 3,191,328 | |---|---| | Less amount representing interest | (2,930,124) | | Present value of net minimum lease payments | $ 261,204 | Rhode Island Amendment
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Virginia Retail Franchising Act
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 Virginia:
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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 Agreement 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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- The Virginia Code Sections 13.1-557-574-13.1-564 provide: "It shall be unlawful for a franchisor to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to it by any provision contained in the franchise." If any ground for default or termination stated in the License does not constitute "reasonable cause," as that term may be defined in the Virginia Code, that provision may not be enforceable.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
| 2024 | 2023 |
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Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Washington Franchise Investment Protection Act
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 Washington:
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- If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard to any license sold in Washington.
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- Nothing in the License shall prevent the licensee from bringing an action in Washington courts to the extent that such actions are provided for under the Washington Franchise Investment Protection Act.
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- A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- The state of Washington has a statute, RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your license. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your license.
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Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza Franchise Disclosure Document, Item 23 includes amendments to the franchise agreement for franchisees in specific states like Washington, California, North Dakota, Virginia, Maryland, Rhode Island, and Hawaii. These amendments primarily address inconsistencies between the franchise agreement and state laws, particularly concerning termination, renewal, non-compete clauses, and waivers of rights. However, none of the provided excerpts explicitly discuss or prohibit the assignment of the Crowne Plaza License Agreement.
These amendments generally aim to ensure that the Crowne Plaza franchise agreements comply with local state laws, which vary significantly. For example, the Washington amendment clarifies that the state's Franchise Investment Protection Act supersedes conflicting provisions in the franchise agreement. Similarly, the North Dakota amendment removes liquidated damages and termination penalty provisions to the extent they are prohibited by North Dakota law. These adjustments reflect an effort by Crowne Plaza to adapt its standard agreement to the legal requirements of different states.
For a prospective Crowne Plaza franchisee, this means that the enforceability and interpretation of certain clauses in the franchise agreement may differ based on the state in which the franchise is located. It is crucial to carefully review the specific amendment applicable to their state to understand their rights and obligations fully. The absence of information regarding assignment in these excerpts suggests that the standard franchise agreement likely contains provisions addressing assignment, which would need to be reviewed in conjunction with any state-specific amendments.
Therefore, a potential franchisee should consult the full franchise agreement and any state-specific amendments to understand the conditions under which they may or may not be able to assign their franchise agreement. They should also seek legal counsel to interpret these provisions in light of applicable state laws and regulations.