What constitutes premature termination by Holiday that would trigger liquidated damages for a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
For purposes of calculating the pre-opening liquidated damages set forth in paragraph 13.J of the License, "mature hotels" means hotels which were open for two full years or longer; were licensed or, alternatively, owned and/or managed by Holiday or one of its affiliates, and; were not in default of their applicable license or management agreement obligations as of the applicable date.
Source: Item 6 — OTHER FEES (FDD pages 31–51)
What This Means (2025 FDD)
I am unable to provide the specific conditions under which Holiday's premature termination would trigger liquidated damages for a Crowne Plaza franchise, according to the 2025 Franchise Disclosure Document excerpts provided. The excerpts do reference paragraph 13.J of the license agreement in the context of calculating pre-opening liquidated damages for mature hotels, but they do not detail the circumstances leading to termination and the associated damages.
A prospective Crowne Plaza franchisee should carefully review paragraph 13.J of the actual license agreement within the FDD to fully understand the conditions that could lead to termination by Holiday and the resulting financial implications. This includes understanding what actions or failures on the franchisee's part could trigger such termination and how the liquidated damages would be calculated.
To gain a comprehensive understanding, a potential franchisee should consult with a franchise attorney to review the entire license agreement and clarify any ambiguities related to termination clauses and liquidated damages. This will help in assessing the potential risks and liabilities associated with the Crowne Plaza franchise.