What is the duration of the initial term of the Crowne Plaza Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Term of Agreement.
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- The term of this Agreement shall commence as of January 1, 2024 , and shall continue for an initial term of twelve (12) months, provided that this Agreement is not earlier terminated as more particularly described below ("Initial Term").
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- After the Initial Term, this Agreement shall automatically renew for additional one-year Terms, although either party may terminate this Agreement without cause (a) during a renewal Term, upon 90 days prior written notice to the other party, or (b) upon notice of non-renewal of at least 30 days prior to the end of a Term. If client terminates, client's agreement may continue and may continue to be billed for services for longer than 90 days if client is not meeting the Revenue Management Certification Standard and/or any other applicable IHG Brand Standard in an alternate, approved way.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the initial term of the agreement commences on January 1, 2024, and continues for twelve months, provided the agreement isn't terminated earlier as described in the document. This means a franchisee's initial commitment to the agreement is relatively short, lasting only one year from the specified date.
Following the initial term, the agreement automatically renews for additional one-year terms. However, either party has the option to terminate the agreement during a renewal term by providing 90 days' prior written notice, or by giving at least 30 days' notice before the end of a term if they choose not to renew. This provides some flexibility for both Crowne Plaza and the franchisee to reassess their partnership annually.
It's important to note that if a franchisee terminates the agreement, they may still be billed for services beyond the 90-day notice period if they are not meeting the Revenue Management Certification Standard or other applicable IHG Brand Standards. This condition highlights the importance of adhering to brand standards to avoid extended financial obligations upon termination. This also means that the franchisee should maintain brand standards even when planning to terminate the agreement.