Who benefits from the use of trademarks related to a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
h responsibilities.
IHG Owners Association committees, their functions and their members will be subject to approval in writing by IHG, which approval will not be unreasonably withheld. Recognizing that the IHG Owners Association must function in a manner consistent with the best interests of all persons using the Brand System, Licensee and IHG will use their best efforts to cause the governing rules of the IHG Owners Association to be consistent with this License.
6. Proprietary Rights:
A. Ownership of the Brand System.
Licensee acknowledges and agrees: (a) not to contest, either directly or indirectly, IHG's and its Affiliates' unrestricted and exclusive ownership of and right to use the Brand System and any element(s) or component(s) thereof; (b) that IHG or any of its Affiliates has the sole and exclusive right to grant licenses to use all or any element(s) or component(s) of the Brand System; and (c) that it will not take any action in derogation of such ownership and rights of IHG and any of its Affiliates. Licensee specifically agrees and acknowledges that IHG owns or is licensed to use the name and mark "Crowne Plaza®" and all other Marks, as defined in paragraph 6.B. below, and other elements associated with the Brand System or derived therefrom (including but not limited to domain names or other identifications or elements used in electronic commerce), together with the goodwill symbolized thereby, and that Licensee will not contest, directly or indirectly, the validity or ownership of the Marks or take any other action in derogation of such validity or ownership either during the term of this License or after its termination. All improvements, modifications and additions whenever made to or associated with the Brand System by the parties hereto or anyone else, and all service marks, trademarks, copyrights, and service mark, trademark, domain name or similar registrations at any time used, applied for or granted in connection with the Brand System, and all goodwill arising from Licensee's use of IHG's Marks and other intellectual property, including (without limitation) local goodwill, shall inure to the benefit of and become the property of IHG. Upon expiration or termination of this License, no monetary amount shall be assigned as attributable to any goodwill associated with Licensee's use of the Brand System or any element(s) or component(s) of the Brand System including any trademarks or service marks licensed hereunder.
B. Trademark Disputes.
The "Marks" means the name and mark "Crowne Plaza®", IHG One Rewards and IHG Concerto and their distinguishing characteristics and the other service marks, trademarks, trade names, slogans, commercial symbols, logos, trade dress, copyrighted material and intellectual property associated with the Brand System, including, without limitation, those which IHG may designate in the future for use and those which IHG does not designate as withdrawn from use. Licensee shall notify IHG immediately of (i) an infringement, or a challenge to Licensee's use of any of the Marks; (ii) any objections, demands,
controversies, allegations or actions asserted or taken by third parties involving any of the Marks or any part of the Brand System of which Licensee becomes aware; and, (iii) any potentially infringing or unauthorized uses of any of the Marks or any part of the Brand System of which Licensee becomes aware. IHG or its Affiliates will have the sole and exclusive right to handle disputes with third parties concerning use of all or any part of the Marks or Brand System, and Licensee will, at its reasonable expense, extend its full cooperation to IHG in all such matters. All recoveries made as a result of disputes with third parties regarding use of the Marks or Brand System or any part thereof shall be for the account of IHG.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, IHG (InterContinental Hotels Group) and its affiliates benefit from the use of trademarks associated with the Crowne Plaza brand. The Licensee (franchisee) acknowledges that IHG owns the rights to the Brand System, including the "Crowne Plaza®" name and mark, other trademarks, and associated goodwill.
Specifically, all improvements, modifications, and additions to the Brand System, along with all service marks, trademarks, copyrights, and goodwill arising from the franchisee's use of IHG's marks, accrue to the benefit of IHG. This means that any enhanced brand recognition or value generated through the franchisee's operation ultimately becomes the property of IHG.
Upon the expiration or termination of the franchise license, the franchisee will not receive any monetary compensation for the goodwill associated with their use of the Crowne Plaza brand or its trademarks. This underscores that the brand equity remains with IHG, and the franchisee's investment in building local goodwill does not translate into a financial asset for them upon exiting the franchise agreement. The franchisee is also required to notify IHG immediately of any trademark infringements or challenges to the use of the marks and must cooperate fully with IHG in resolving such disputes, with all recoveries from these disputes benefiting IHG.