Can a Crowne Plaza Equipment Lessee make alterations to the dispensing equipment without consent?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment Lessee will not make any alterations, additions, or improvements to the Equipment without the prior written consent of Company. All parts added to the Equipment through alterations, repairs, additions or improvements will constitute accessions to, and will be considered an item of the Equipment and title to such will immediately vest in Company. Equipment and title to such will immediately vest in Company. Equipment and this Lease, and any amounts due or to become due, to any third party ("Assignee") for any reason. Upon receipt of written notice from Company's right, title and interest in or to any Equipment (in whole or in part) and this Lease, and any amounts due or to become due, to any third party ("Assignee") for any reason. Upon receipt of written notice from Company of such assignment, Equipment
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, an Equipment Lessee is prohibited from making alterations, additions, or improvements to the dispensing equipment without obtaining prior written consent from the Coca-Cola Company. This restriction is in place because the title to the equipment remains with the Coca-Cola Company at all times. Any modifications or additions made to the equipment automatically become the property of the Coca-Cola Company.
This requirement ensures that the dispensing equipment is maintained according to the Coca-Cola Company's standards and specifications. It prevents unauthorized modifications that could compromise the equipment's performance, safety, or compatibility with Coca-Cola products. By requiring written consent, the Coca-Cola Company retains control over any changes to the equipment, ensuring consistency and quality in the dispensing of their beverages.
For a prospective Crowne Plaza franchisee, this means that any desired changes to the dispensing equipment, no matter how minor, must be formally requested and approved in writing by the Coca-Cola Company. Failure to comply with this requirement could result in a breach of the lease agreement and potential penalties. Therefore, it is crucial for franchisees to adhere to this policy and maintain open communication with the Coca-Cola Company regarding any equipment-related needs or modifications.