Can a Crowne Plaza Equipment Lessee transfer or encumber the dispensing equipment in any way?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- TITLE TO THE EQUIPMENT. Title to the Equipment is, and will at all times remain, vested in Company. Equipment Lessee will have no right, title, or interest in or to the Equipment, except the right to quiet use of the Equipment in the ordinary course of its business as provided in this Lease. Equipment Lessee will execute such title documents, financing statements, fixture filings, certificates and such other instruments and documents as Company will reasonably request to ensure to Company's satisfaction the protection of Company's title to the Equipment and Company's interests and benefits under this Lease. Equipment Lessee will not transfer, pledge, lease, sell, hypothecate, mortgage, assign or in any other way encumber or dispose of any of the Equipment. THE PARTIES AGREE, AND EQUIPMENT LESSEE WARRANTS, THAT THE EQUIPMENT IS, AND WILL AT ALL TIMES REMAIN, PERSONAL PROPERTY OF COMPANY NOTWITHSTANDING THAT THE EQUIPMENT OR ANY PART THEREOF MAY NOW BE, OR HEREAFTER BECOME, IN ANY MANNER AFFIXED OR ATTACHED TO, OR EMBEDDED IN, OR PERMANENTLY RESTING UPON, REAL PROPERTY OR IMPROVEMENTS ON REAL PROPERTY. 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 explicitly prohibited from transferring, pledging, leasing, selling, or otherwise encumbering the dispensing equipment. The title to the equipment remains with the company at all times. The Equipment Lessee only has the right to use the equipment in the ordinary course of their business.
To ensure the protection of the company's title and interests, the Equipment Lessee must execute any title documents, financing statements, or other instruments reasonably requested by the company. Furthermore, any alterations, additions, or improvements made to the equipment automatically become the property of the company.
This restriction is a standard practice in franchising, as it protects the franchisor's assets and ensures consistent brand standards across all locations. It also allows the franchisor to maintain control over the quality and type of products being dispensed through the equipment. If the Crowne Plaza franchisee fails to comply, they may be in breach of contract.