What is the deadline for a Crowne Plaza licensee to provide IHG with written notice of any judicial or administrative investigation or proceeding that could be the basis for a claim for indemnification?

According to the 2025 Crowne Plaza Franchise Disclosure Document, a licensee must provide IHG with written notice of any judicial or administrative investigation or proceeding that could lead to a claim for indemnification within three days of the licensee gaining knowledge of the event. This requirement ensures that IHG is promptly informed of any potential liabilities or claims arising from the operation of the Crowne Plaza hotel.

This notification timeframe is crucial because it allows IHG to take timely action to protect its interests, which may include investigating the matter, participating in the defense, or seeking early resolution. The indemnity clause requires the licensee to protect IHG from any financial losses, including fines, damages, legal fees, and settlement amounts, arising from claims related to the hotel's operation or the licensee's actions.

Failure to provide notice within the specified three-day period could potentially impact the licensee's obligations to indemnify IHG, as prompt notification is a condition of the indemnity agreement. This requirement is stricter than some franchise agreements, where notification periods might be longer, emphasizing the importance Crowne Plaza places on immediate awareness of potential liabilities.

Prospective Crowne Plaza franchisees should be aware of this strict notification requirement and establish internal procedures to ensure compliance. This includes training staff to recognize events that could trigger indemnification claims and implementing a system for promptly reporting such events to both the franchisee's management and IHG.