For a Crowne Plaza franchise, under what conditions can construction be interrupted after it has commenced?

Based on the 2025 Franchise Disclosure Document, the circumstances under which construction of a Crowne Plaza franchise can be interrupted after commencement are not explicitly detailed. However, several amendments to the franchise agreement across different states address the enforceability of certain provisions in relation to the U.S. Bankruptcy Code. Specifically, the FDD mentions that paragraphs 11.C(1)(b) and (d) of the License Agreement are amended to include language stating, "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." This suggests that bankruptcy proceedings could potentially impact the continuation of construction.

Additionally, the amendments for states like California, Hawaii, Virginia, North Dakota, Rhode Island, and Washington indicate that local state laws may supersede certain provisions of the franchise agreement, particularly those concerning termination, non-renewal, and liability. For instance, California Business and Professions Code Sections 20000 through 20043 provide rights to the licensee regarding termination or non-renewal of a license, and if the license contains a provision inconsistent with the law, the law will control. Similarly, Hawaii Revised Statutes Section 482E-1 provides rights to the licensee concerning termination or non-renewal of a license, and if the license contains a provision that is inconsistent with the law, the law will control.

While these amendments do not directly address construction interruption, they imply that certain legal and financial factors, such as bankruptcy or conflicts with state franchise laws, could create conditions where construction might be paused or terminated. A prospective Crowne Plaza franchisee should seek clarification from the franchisor regarding specific scenarios and contractual clauses that could lead to such interruptions, as well as understand their rights and obligations under both the franchise agreement and applicable state laws.