What does Crowne Plaza consider a material breach of the Licensee's obligations under the License regarding information and documents submitted to IHG?

According to Crowne Plaza's 2025 Franchise Disclosure Document, a material breach of the Licensee's obligations under the License occurs if the Licensee fails to comply with IHG's requirements for submitting information and documents, or if there is any omission or misrepresentation of any material fact in the information or documents submitted to IHG in connection with the license application and/or the licensing process. This representation extends to the authority of the individuals signing the License on behalf of the Licensee, ensuring they are duly authorized to bind the Licensee to the agreement. The Licensee also warrants that their execution, delivery, and performance of the License will not violate any existing agreements or obligations.

For a prospective Crowne Plaza franchisee, this means that providing accurate and complete information during the application and licensing process is critical. Any discrepancies, omissions, or misrepresentations could lead to serious consequences, including the potential termination of the license agreement. This underscores the importance of thoroughness and transparency when dealing with IHG during the initial stages of establishing the franchise relationship.

Furthermore, the franchisee must ensure that all individuals representing the company have the necessary authority and that the agreement does not conflict with any existing legal or contractual obligations. This requirement is designed to protect IHG from potential legal challenges or disputes arising from the franchisee's internal affairs or prior commitments. Therefore, franchisees should conduct a comprehensive review of their internal processes and legal obligations before submitting any information or documents to IHG.