What are the exceptions to the confidentiality restrictions outlined in the Crowne Plaza franchise agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
or to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to it by any provision contained in the franchise." If any ground for default or termination stated in the License does not constitute "reasonable cause," as that term may be defined in the Virginia Code, that provision may not be enforceable.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
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Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Washington Franchise Investment Protection Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Washington:
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- If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard to any license sold in Washington.
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- Nothing in the License shall prevent the licensee from bringing an action in Washington courts to the extent that such actions are provided for under the Washington Franchise Investment Protection Act.
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- A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- The state of Washington has a statute, RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your license. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your license.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW may prevail.
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- The Licensor will have no obligation upon the termination of the License Agreement to offer the Franchisee a continued right to operate its Even Business, and the Franchisee may be required at that time to stop operating its hotel as an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort and to comply with all post-termination obligations.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a licensee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annua
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza Franchise Disclosure Document, there are specific exceptions to the standard franchise agreement for franchisees operating in certain states, primarily concerning conflicts with state franchise laws and U.S. Bankruptcy Code. These exceptions generally supersede the original agreement to comply with local regulations.
For franchisees in Washington, several provisions of the franchise agreement may be superseded by the Washington Franchise Investment Protection Act (RCW 19.100.180). This includes the franchisee's right to bring actions in Washington courts, the enforceability of waivers or releases of rights, and potential conflicts of law. Additionally, certain restrictions on soliciting or hiring employees may be void and unenforceable in Washington due to RCW 49.62.060.
In Rhode Island, any provision restricting jurisdiction or venue to a forum outside the state or requiring the application of other states' laws is void concerning claims enforceable under the Rhode Island Franchise Investment Act. Similarly, for franchisees in Maryland and North Dakota, the general release language in the license agreement does not relieve IHG or any other person from liabilities imposed by state franchise laws. North Dakota law also supersedes any conflicting provisions in the license agreement or Georgia law, and liquidated damages or termination penalty provisions may be deleted if prohibited by North Dakota law. Furthermore, any provision designating jurisdiction or venue outside of North Dakota is deleted for licenses issued in North Dakota.
For franchisees in California, the agreement's requirement for applying Georgia laws may not be enforceable under California law. Additionally, Crowne Plaza is prohibited from modifying a franchise agreement or requiring a general release in exchange for assistance related to a declared state or federal emergency. In Virginia, the Virginia Retail Franchising Act provides that it is unlawful for a franchisor to cancel a franchise without reasonable cause or use undue influence to induce a franchisee to surrender any right given to it by any provision contained in the franchise.