In the event of a lawsuit related to the Crowne Plaza franchise agreement, is the prevailing party entitled to reimbursement of attorney's fees and court costs?

According to the 2025 Crowne Plaza Franchise Disclosure Document, in the event of any legal action related to the agreement, the prevailing party is entitled to receive reimbursement for reasonable attorney's fees, costs, and court costs. This means that if a Crowne Plaza franchisee or the franchisor wins a lawsuit or other legal proceeding related to the franchise agreement, the losing party will have to pay the winner's legal expenses.

This provision can significantly impact the financial risks associated with becoming a Crowne Plaza franchisee. If a franchisee believes they have a strong case against the franchisor, they can pursue legal action knowing that they may be able to recover their legal costs if they win. Conversely, franchisees should be aware that if they lose a lawsuit against Crowne Plaza, they will be responsible for not only their own legal fees but also Crowne Plaza's.

It is important for prospective Crowne Plaza franchisees to carefully consider this litigation cost provision and understand its potential implications. Franchisees should consult with an attorney to fully understand their rights and obligations under the franchise agreement and to assess the risks and benefits of pursuing legal action against the franchisor.