Who benefits from the use of trademarks under the Crowne Plaza Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
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 are the primary beneficiaries of the trademarks associated with the Crowne Plaza brand. The agreement explicitly states that IHG owns or is licensed to use the name and mark "Crowne Plaza®" and all other related marks, along with the goodwill symbolized by these marks. This means IHG retains control over the brand's image and reputation. All improvements, modifications, and additions to the Brand System, including goodwill from the franchisee's use of IHG's marks, ultimately benefit IHG. Upon termination of the license, no monetary value is assigned to the franchisee for any goodwill they may have generated through the use of the Crowne Plaza brand.
As a Crowne Plaza franchisee, you acknowledge IHG's exclusive ownership and right to use the Brand System. You agree not to contest IHG's ownership and must notify IHG immediately of any infringements or challenges to the use of the marks. IHG has the sole right to handle disputes concerning the use of the marks, and any recoveries made from such disputes belong to IHG. The franchisee is required to cooperate fully with IHG in these matters at their own expense.
This arrangement is typical in franchising, where the franchisor maintains strict control over its brand and intellectual property. While franchisees benefit from using a well-established brand, they do not gain ownership or equity in the brand itself. This ensures consistency and quality across all franchise locations, protecting the brand's overall value for the franchisor. Prospective franchisees should understand that building local goodwill through their Crowne Plaza location ultimately benefits IHG, not themselves, in terms of brand equity.