What happens to an equipment lease if the agreement with Crowne Plaza is terminated?

According to Crowne Plaza's 2025 Franchise Disclosure Document, the termination of the franchise agreement does not automatically terminate any existing equipment leases. This means that even if the franchise agreement ends, the franchisee is still obligated to fulfill the terms of the equipment lease, either by continuing to make rental payments until the equipment is fully paid for or by returning the rented equipment to Crowne Plaza.

If a Crowne Plaza franchisee chooses to terminate the equipment lease for a specific piece of equipment before 100 months from its installation date (excluding situations where Crowne Plaza removes the equipment without a valid reason), the franchisee is responsible for covering the costs associated with the equipment's removal and remanufacturing. These costs include the actual expenses for removal, standard shipping and handling charges, and the remaining unamortized portion of the costs related to the equipment's installation, non-serialized parts (such as pumps, racks, and regulators), and other ancillary equipment.

The terms of the lease will remain in effect for each piece of equipment until it has been removed from the franchisee's premises. These lease terms will continue to apply even after the expiration or termination of the overarching agreement into which the lease is incorporated. This ensures that Crowne Plaza retains its rights and protections regarding the leased equipment, regardless of the status of the franchise agreement.