What is a Crowne Plaza franchisee's obligation if they change the nature of their business?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
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.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, if a franchisee's license agreement is terminated, Crowne Plaza has no obligation to offer the franchisee a continued right to operate their Even Business. The franchisee may be required to stop operating their hotel as a Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort. They must also comply with all post-termination obligations.
This means that a franchisee cannot assume they can simply rebrand or change their hotel concept and continue operating under a different flag after their Crowne Plaza agreement ends. They will be obligated to remove all Crowne Plaza branding and cease operating as a Crowne Plaza hotel.
It is important for prospective franchisees to understand the terms and conditions regarding termination and post-termination obligations outlined in the license agreement. Franchisees should seek legal counsel to fully understand these obligations and the potential implications for their business if the franchise agreement is terminated.