Does Crowne Plaza guarantee that a franchisee will be able to procure all required licenses, permits, certificates, or other governmental authorizations?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
We do not represent that you will have the ability to procure any required license, permit certificate or other governmental authorization that may be necessary or required for you to carry out the activities contemplated by the License Agreement. It is your responsibility to learn about and comply with all applicable laws.
Source: Item 1 — THE LICENSOR, ANY PARENTS, PREDECESSORS AND AFFILIATES (FDD pages 8–15)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, Crowne Plaza does not guarantee that a franchisee will be able to procure all required licenses, permits, certificates, or other governmental authorizations. The FDD states that it is the franchisee's responsibility to learn about and comply with all applicable laws. These laws include those affecting zoning and construction, public accommodations, accessibility by persons with disabilities, service of alcoholic beverages, health and safety, food storage and preparation, labor, data security, and privacy.
This means that prospective Crowne Plaza franchisees must independently ensure they can meet all legal and regulatory requirements to operate their hotel. This includes obtaining all necessary permits and licenses, which can vary significantly depending on the specific location of the hotel.
The franchisee bears the risk of failing to obtain necessary authorizations, which could prevent them from opening or operating their Crowne Plaza hotel. This is a standard practice in franchising, as local regulations and compliance are highly dependent on the franchisee's chosen location and specific circumstances.