Does the assigning party remain financially responsible for the assigned obligations in the case of any assignment of the Crowne Plaza agreement?

According to the 2025 Crowne Plaza FDD, in the event of an assignment of rights and obligations under the agreement, the assigning party remains financially responsible for the performance of the assigned obligations. This condition applies specifically to the agreement between an Eligible Participant and AT&T, outlining the terms under which either party may assign their rights and obligations. AT&T may assign its rights and obligations to an AT&T Affiliate with notice to the Eligible Participant. Similarly, an Eligible Participant can assign its rights and obligations to an Eligible Participant Affiliate with notice to AT&T.

This clause ensures that even if a party assigns its responsibilities to another entity, the original party remains accountable for ensuring those obligations are fulfilled. This provides a layer of security and continuity for the other party involved in the agreement. For a Crowne Plaza franchisee, this means that if AT&T assigns its obligations to another provider, AT&T remains responsible for ensuring those obligations are met.

However, it's important to note that this specific clause applies to the agreement between Eligible Participants and AT&T, and not necessarily to the franchise agreement between Crowne Plaza (Holiday Hospitality Franchising, LLC) and its franchisees. The FDD does not explicitly state whether Holiday Hospitality Franchising, LLC remains financially responsible if they assign their rights, duties, or obligations under the franchise agreement. A prospective franchisee should seek clarification from Crowne Plaza regarding their financial responsibilities after assignment.