What is the 'Commencement Date' defined as in the Crowne Plaza dispensing equipment lease?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the Commencement Date for each piece of beverage dispensing equipment leased to a franchisee is defined as its installation date. This means that the lease term for each piece of equipment begins on the day it is installed at the Crowne Plaza hotel.

This definition is important because it determines when the lease agreement for that specific piece of equipment begins and, consequently, when the franchisee's financial obligations for that equipment start accruing. The installation date triggers the start of the lease, affecting payment schedules and potential termination costs.

Furthermore, if a Crowne Plaza franchisee terminates the lease for a piece of equipment before 100 months from its Commencement Date (installation date), they may be required to pay certain unbundling costs. These costs include the actual cost of removal and remanufacturing of the equipment, as well as the unamortized portion of the costs of installation and non-serialized parts. This clause incentivizes franchisees to maintain the lease for the specified period or face additional expenses upon early termination.

Therefore, understanding the Commencement Date is crucial for managing the financial aspects of the dispensing equipment lease. Franchisees should keep accurate records of installation dates for each piece of equipment to track their lease obligations and potential termination liabilities.