Is a breach of any representation, warranty, or covenant in the Crowne Plaza Agreement considered an Event of Default?

According to Crowne Plaza's 2025 Franchise Disclosure Document, a breach of any representation, warranty, or covenant within the franchise agreement is considered an Event of Default. Specifically, the FDD states that if any of a party's representations, warranties, or covenants in the agreement are breached in any respect, it constitutes an Event of Default.

This means that if a Crowne Plaza franchisee violates any promise or guarantee made within the franchise agreement, Crowne Plaza has the right to declare the franchisee in default. This can trigger various consequences, including potential termination of the franchise agreement.

It is important for prospective franchisees to carefully review the franchise agreement and understand all representations, warranties, and covenants to ensure compliance and avoid potential default. Franchisees should seek legal counsel to fully understand their obligations and the potential ramifications of any breaches.