Besides the prohibition on assignment, who does the Crowne Plaza agreement bind and benefit?

According to the 2025 Crowne Plaza Franchise Disclosure Document, the license agreement, except for the prohibition on assignment, is binding upon and benefits the heirs, successors, and assigns of the parties involved. This means that if the franchisee passes away, their heirs would be bound by the agreement and also benefit from it. Similarly, if either party undergoes a merger or acquisition, the resulting entity (the successor) would also be bound by and benefit from the agreement. The same applies to any entity to which the rights are properly assigned.

This clause ensures continuity and clarity regarding the obligations and entitlements under the franchise agreement, even if the original parties undergo changes in their legal status or structure. However, it's crucial to note the explicit exception: the franchisee cannot freely assign or transfer the agreement to another party without Crowne Plaza's prior written consent. This restriction is common in franchising to ensure that the new operator meets the franchisor's standards and is capable of maintaining the brand's reputation.

For a prospective Crowne Plaza franchisee, this provision offers a degree of assurance that the benefits and obligations of the franchise agreement will extend to their legal successors or assigns, subject to the franchisor's approval for any assignment. It is important for the franchisee to understand the conditions under which assignment may be permitted and to seek legal counsel to ensure compliance with all requirements.