What must a Crowne Plaza franchisee obtain from Holiday before entering into any lease, management agreement, or other similar arrangement for the operation of the Hotel?

According to the 2025 Crowne Plaza Franchise Disclosure Document, a franchisee must obtain Holiday's written consent before entering into any lease, management agreement, or other similar arrangement with any entity for the operation of the hotel or any part of the hotel, including food and beverage services. This requirement ensures that Crowne Plaza maintains control over the standards and operations of its franchised hotels, even when a third party is involved in the management.

This stipulation has significant implications for prospective Crowne Plaza franchisees. It means that franchisees cannot independently decide to outsource hotel management or lease arrangements without the franchisor's explicit approval. This approval process allows Crowne Plaza to vet potential management companies or lease terms to ensure they align with the brand's operational standards and financial interests. Franchisees need to factor in the time and potential challenges associated with obtaining this consent when planning their business operations.

Furthermore, even with Holiday's consent, the franchisee remains ultimately responsible for the performance and conduct of any management company they hire. This responsibility includes ensuring the management company adheres to all Crowne Plaza's rules, regulations, and requirements. The management agreement itself must also include specific provisions that protect Crowne Plaza's interests, such as the agreement to cease operating as a Crowne Plaza hotel if the license terminates and the precedence of the license terms over the management agreement in case of conflicts. This highlights the importance of carefully selecting and overseeing any third-party management to maintain compliance and protect the franchise investment.