Does the Crowne Plaza FDD state that the company is subject to claims and litigation?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
or requiring a general release, in exchange for any assistance related to a declared state or federal emergency.
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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.
| Date: | | | |--------------------------------------------------------------|------------------------------------------------------------------------------|--| | Licensee: | | | | «EntityAllCaps» | By: «AuthorizedSignee» «SigneesTitle» | | | IHG: | | | | HOLIDAY HOSPITALITY FRANCHISING, LLC | | | | By: Six Continents Hotels, Inc., | | | | its sole managing member | By: Jenny Tidwell Vice President Franchise Licensing and Compliance | | California Amendment
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To Section 482E-3 of Hawaii Revised Statutes
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provision shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Hawaii:
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- Section 13.I of the License is amended to include the following: "The general release language contained in the License shall not relieve IHG or any other person, directly or indirectly, from liability imposed by the laws concerning franchising in the State of Hawaii."
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- In accordance with the provision under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- Hawaii Revised Statutes Section 482E-1 provides rights to the Licensee concerning termination or non-renewal of a License. If the License contains a provision that is inconsistent with the law, the law will control.
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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.
| Licensee: | |
|---|---|
| «EntityAllCaps» | |
| By: | |
| «AuthorizedSignee» | |
| «SigneesTitle» | |
| IHG: | |
| HOLIDAY HOSPITALITY FRANCHISING, LLC | |
| By: | Six Continents Hotels, Inc., |
| its sole managing member | |
| By: | |
| Jenny Tidwell | |
| Vice President | |
| Franchise Licensing and Compliance |
Date: __________
Hawaii Amendment
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Maryland Franchise Registration And Disclosure Law
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 Maryland:
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- In accordance with the provision under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- Section 13.I of the License is amended to include the following: "The general release language contained in the License shall not relieve IHG or any other person, directly or indirectly, from liability imposed by the laws concerning franchising in the State of Maryland."
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- The provisions of the License which permits all suits to be filed in Georgia is hereby deleted for residents of the State of Maryland and/or franchises to be operated in the State of Maryland.
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- Any claims arising under the Maryland Franchise Registration and Disclosure Laws must be brought within three years after the grant of the License.
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- Pursuant to the Interpretive Opinion "Adopting NASAA Statement of Policy Regarding the Use of Franchise Questionnaires and Acknowledgments" dated January 23, 2023 (the "Interpretive Opinion"), issued by the State of Maryland Office of the Attorney General Securities Division (the "Division"), the Division requires franchisors selling franchises that are subject to the Maryland Franchise Registration and Disclosure Law to include the following statement in their franchise agreements: "No statement, questionnaire, or acknowledgment signed or agreed to by a franchisee in connection with the commencement of the franchise relationship shall have the effect of (i) waiving any claims under any applicable state franchise law, including fraud in the inducement, or (ii) disclaiming reliance on any statement made by any franchisor, franchise seller, or other person acting on behalf of the franchisor. This provision supersedes any other term of any document executed in connection with the franchise." Accordingly, any statement, questionnaire, or acknowledgment in the License Agreement that is not permitted under the Interpretive Opinion is deleted in its entirety and shall have no force or effect.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza FDD, Item 23 includes amendments to the franchise agreement that address how certain state laws interact with the agreement, particularly concerning liability, jurisdiction, and franchisee rights. These amendments indicate that Crowne Plaza is subject to franchise laws that may give franchisees the right to bring claims. For example, the amendment for Maryland states that the general release language in the license shall not relieve IHG (InterContinental Hotels Group) from liability imposed by franchise laws in Maryland. Similar stipulations are present in the amendments for North Dakota and Hawaii. These stipulations ensure that franchisees retain their rights under state franchise laws, regardless of the general release language in the standard agreement.
Several amendments address the enforceability of certain provisions in specific states. For instance, the California amendment notes that certain liquidated damages clauses may be unenforceable under California law. Similarly, the Washington amendment states that provisions unreasonably restricting the statute of limitations for claims under the Washington Franchise Protection Act may not be enforceable. These amendments suggest that Crowne Plaza must comply with varying state laws, which can impact the enforceability of certain standard franchise agreement terms.
These amendments also address venue and jurisdiction for legal actions. The Maryland amendment removes the provision that all suits must be filed in Georgia for residents or franchises operating in Maryland. The North Dakota amendment similarly deletes any provision designating jurisdiction or venue outside of North Dakota for licenses issued in that state. The Rhode Island amendment voids any provision restricting jurisdiction or venue to a forum outside of Rhode Island. These changes ensure that franchisees are not forced to litigate disputes in a distant or inconvenient forum, providing them with more accessible legal recourse.
Overall, the inclusion of these state-specific amendments in Item 23 of the Crowne Plaza FDD indicates that the franchise agreement is subject to various legal and regulatory requirements that can affect the rights and obligations of both the franchisor and the franchisee. Prospective franchisees should carefully review these amendments to understand how state laws may impact their franchise agreement and their ability to pursue claims against Crowne Plaza.