Can a Crowne Plaza Eligible Participant assign the AT&T Participation Agreement to another party?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- This Participation Agreement may not be assigned by Eligible Participant without the written consent of AT&T, which consent shall not be unreasonably withheld, delayed, or conditioned. Any assignment in contravention of the foregoing shall be null and void.
(a) Eligible Participant may, without AT&T's consent but upon notice to AT&T, assign in whole or relevant part its rights and obligations under this Agreement to an Eligible Participant Affiliate. AT&T may, without Eligible Participant's consent but upon notice to Eligible Participant, assign in whole or relevant part its rights and obligations under this Agreement to an AT&T Affiliate. In no other case may this Agreement be assigned by either party without the prior written consent of the other party (which consent will not be unreasonably withheld or delayed). In the case of any assignment, the assigning party shall remain financially responsible for the performance of the assigned obligations.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, an Eligible Participant, such as a franchisee, generally cannot assign the AT&T Participation Agreement to another party without AT&T's written consent. This consent from AT&T must not be unreasonably withheld, delayed, or conditioned. Any assignment attempted without this consent will be considered null and void.
However, there is an exception: an Eligible Participant can assign the agreement to an "Eligible Participant Affiliate" without AT&T's consent, provided they give notice to AT&T. In this case, the assigning party remains financially responsible for the performance of the assigned obligations. AT&T also has the right to assign the agreement to an AT&T Affiliate without the Eligible Participant's consent, again with notice provided to the Eligible Participant.
This clause protects AT&T's interests by ensuring that the party responsible for the agreement's obligations is creditworthy and reliable. For a Crowne Plaza franchisee, this means they cannot simply transfer their obligations under the AT&T Participation Agreement to another entity without AT&T's approval, unless it is to an affiliate, and even then, they remain financially responsible. This could be a significant consideration if a franchisee plans to sell their franchise or transfer its operations.