Where can I find the Terms and Conditions that govern the relationship between Crowne Plaza and the franchisee?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 23: Receipts]
Amendment To The Holiday Hospitality Franchising, LLC
Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To
The California Department of Financial Protection and Business Oversight
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 California:
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- In accordance with the provisions 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 US Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- California Business and Professions Code Sections 20000 through 20043 provide 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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- The License contains a liquidated damages clause. Under California Civil Code Section 1671, certain liquidated damages clauses are unenforceable,
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- The License and Guaranty require application of the laws of Georgia. In accordance with 5050.23 Sec. 310.114.1(c)(5)(B)(v), this provision may not be enforceable under California law.
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- With respect to franchises sold in California, a franchisor is prohibited from modifying a franchise agreement, 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.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the terms and conditions governing the relationship between Crowne Plaza and its franchisees are primarily found within the License Agreement. However, Item 23 includes several state-specific amendments to the standard License Agreement that modify the terms for franchisees operating in California, Maryland, Washington, Rhode Island, and Virginia. These amendments address various legal and regulatory requirements specific to franchising within those states.
For example, the amendment for California notes that the state's Business and Professions Code Sections 20000 through 20043 provide certain rights to the franchisee concerning termination or non-renewal of a license, and if the License contains a provision inconsistent with the law, the law will control. Similarly, the Washington amendment states that the Washington Franchise Investment Protection Act will prevail over any inconsistent provisions in the franchise disclosure document and license agreement. The Maryland amendment includes language to ensure that franchisees do not waive claims under state franchise law or disclaim reliance on statements made by the franchisor.
These state-specific amendments highlight the importance of carefully reviewing Item 23 in conjunction with the License Agreement to fully understand the terms and conditions that will govern the franchise relationship, especially considering the location of the franchise. Prospective franchisees should pay close attention to the specific provisions that apply to their state, as these can significantly alter the standard terms outlined in the License Agreement. It is also advisable to seek legal counsel to ensure a comprehensive understanding of these documents and their implications.