What is the Crowne Plaza franchisee's obligation regarding copying the software license detailed in the Microsoft Select Participation Agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
You must also enter into a Microsoft Select Participation Agreement (Exhibit G-10 to this disclosure document) which details the obligations under the provided software license (i.e., you cannot copy the license and use such license for unauthorized machines).
Source: Item 8 — Restrictions on Sources of Products and Services (FDD pages 59–68)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, franchisees must enter into a Microsoft Select Participation Agreement. This agreement, detailed in Exhibit G-10 of the FDD, specifies that franchisees are prohibited from copying the software license and using it for unauthorized machines. This restriction is a standard practice to protect the software vendor's intellectual property and prevent unauthorized use of the software.
This requirement is tied to the Property Management System (PMS) that Crowne Plaza hotels must install. The PMS is essential for accessing the Reservation System and managing hotel operations. Franchisees must also enter into a Joinder Agreement with Hewlett-Packard Inc. to obtain the PMS system hardware, software, and deployment services, as well as the procurement and installation of a credit card solution.
For a prospective franchisee, this means they must adhere strictly to the terms of the Microsoft Select Participation Agreement and ensure that the software license is only used as authorized. Failure to comply with this agreement could result in legal consequences and potential disruptions to the hotel's operations. Franchisees should carefully review Exhibit G-10 and seek legal counsel if they have any questions or concerns about their obligations under the agreement.