Does the Crowne Plaza dispensing equipment lease survive the termination of other agreements?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The terms of this Lease will continue in effect with respect to each piece of Equipment until the Equipment has been removed from Equipment Lessee's premises and will survive the expiration or termination of any agreement into which this Lease is incorporated.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the terms of the dispensing equipment lease will remain in effect even after the termination or expiration of any agreement into which the lease is incorporated. Specifically, the lease continues until the equipment is removed from the franchisee's premises.
This means that even if the franchise agreement is terminated, the franchisee is still obligated to adhere to the terms of the equipment lease until all leased equipment is physically removed from the premises. This could include continuing to pay lease fees, maintaining the equipment, and adhering to any other conditions outlined in the lease agreement.
A prospective Crowne Plaza franchisee should carefully review the terms of the dispensing equipment lease to understand their obligations in the event of termination or expiration of the franchise agreement. This includes understanding the costs associated with removing the equipment, as well as any ongoing responsibilities during the period between termination/expiration and equipment removal. Franchisees should also clarify what constitutes 'removal' of equipment to avoid potential disputes.