What are the franchisee's obligations regarding de-identification upon termination or non-renewal of a Crowne Plaza license?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In | Summary | |
|---|---|---|---|
| Agreement | |||
| a. Length of the license term (Note 1) | License: 11.A | The term begins on the Effective Date and expires 20 years from date Hotel opens in the Brand System for a new development; 10 or more years from date Hotel opens in the Brand System for a conversion; and 10 or more years from Effective Date for a change of ownership or re-licensing. | |
| b. Renewal or | Not applicable (see | The License does not provide for | |
| extension of term | License: 11.A) | renewal or term extensions. | |
| c. Requirements for you to renew or extend | Not applicable (see License: 11.A) | The License does not provide for renewal or term extensions. If we agree to Re-license, you may be asked to sign a contract with materially different terms and conditions than your original contract. | |
| d. Termination by you | Not applicable | ||
| e. Termination by | License: Not | MTSA may be terminated by IHG Tech | |
| Holiday without | applicable | for convenience on 90 days’ prior | |
| Cause | MTSS: 10.1 | written notice to the licensee. | |
| f. Termination by Holiday with Cause (Notes 2 and 3) | License: 11.B, 11.C, 13.J and Attachment B MTSS: 10.3 | Holiday may terminate with cause. You pay liquidated damages if Holiday terminates under Paragraphs 11.B, 11.C, or 13.J. Termination may occur for failure to perform “The Work”. See Notes 2 and 4 and Exhibit B. | |
| g. "Cause" defined – | License: 11.B, | Any default other than those listed in | |
| defaults which can | “h” below. | ||
| be cured (Note 3) | See Note 2. | ||
| h. "Cause" defined – non-curable defaults | License: 10, 11.C and Attachment B | Non-curable defaults: bankruptcy; non- dismissed judgments exceeding $50,000; trademark misuse, or if you contest Holiday's ownership of trademarks; loss of possession of the property; dissolution of the licensee entity; failure to identify or operate the Hotel as a Brand System Hotel; violation of Licensor’s proprietary | |
| Provision | Section In Agreement | Summary rights; unapproved transfers; conviction of a felony; false books and records; failure to comply with safety, security or privacy of your guests or reputation standards; condemnation or casualty occurs and Hotel does not reopen when required; unauthorized use of Marks; and, refusal to allow inspection or audit. | |
| i. | Your obligations upon termination/ non-renewal | License: 7.A. 11.D, 11.E, 13.J and Attachment "B" MTSS,13.1 & Attachment 4-1 to Schedule 4 | Obligations include de-identification and payment of amounts due. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 87–91)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, Item 17 outlines the franchisee's obligations upon termination or non-renewal of the license, which include de-identification and payment of amounts due. De-identification typically involves removing all Crowne Plaza branding, signage, and proprietary materials from the hotel premises to ensure it no longer represents itself as a Crowne Plaza location. This is a standard procedure in franchising to protect the brand's integrity and prevent consumer confusion. The specific steps and requirements for de-identification would be detailed in the License Agreement, referenced as Exhibit B.
In practical terms, a franchisee facing termination or non-renewal must act swiftly to remove all indications of the Crowne Plaza brand from the property. This includes exterior signs, interior décor, marketing materials, and any other items that identify the hotel as a Crowne Plaza. Failure to do so could result in legal action from Crowne Plaza to enforce the de-identification requirements. Additionally, the franchisee is responsible for settling any outstanding financial obligations to Crowne Plaza, as specified in the License Agreement.
Prospective franchisees should carefully review the License Agreement to understand the full scope of their de-identification obligations and the associated costs. It is also advisable to consult with an attorney to ensure compliance with all legal and contractual requirements upon termination or non-renewal of the franchise agreement. Understanding these obligations upfront can help franchisees prepare for a smooth transition and avoid potential disputes with Crowne Plaza.