What is the Crowne Plaza Equipment Lessee's obligation regarding the equipment's status as personal property?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the Equipment Lessee is responsible for ensuring that the equipment remains the personal property of the Company, regardless of any attachment to real property. This means that even if the equipment becomes affixed or embedded in the real estate, it is still considered personal property and belongs to the Company.
The Equipment Lessee warrants that the equipment will always remain the Company's personal property, even if it is attached to real property. This obligation requires the lessee to treat the equipment as personal property and not take any actions that could jeopardize the Company's ownership, such as claiming it as a fixture or part of the real estate.
This provision protects Crowne Plaza's ownership of the equipment and prevents disputes over ownership if the franchisee's property is sold or transferred. The franchisee cannot claim the equipment as part of their real estate assets. This is a standard clause in equipment leases to clarify ownership and prevent legal complications.