What happens if a Crowne Plaza franchisee's accountants refuse to deliver an unqualified opinion?

According to the 2025 Crowne Plaza Franchise Disclosure Document, a franchisee's failure to obtain an unqualified opinion from their independent certified accountants regarding their annual financial statements and those of their consolidated subsidiaries constitutes a default under the License Agreement. This is a significant issue because it could trigger termination of the franchise agreement.

An unqualified opinion from an accountant essentially means that the financial statements are presented fairly and in accordance with generally accepted accounting principles (GAAP). If the accountants refuse to provide this opinion, it suggests there are material issues or discrepancies in the franchisee's financial records that need to be addressed.

For a prospective Crowne Plaza franchisee, this highlights the importance of maintaining accurate and transparent financial records. Franchisees should ensure they have a competent accounting team in place and adhere to all financial reporting requirements outlined by Crowne Plaza. Failure to do so could jeopardize their franchise agreement and investment. This clause protects Crowne Plaza by ensuring franchisees maintain sound financial practices, which reflects on the brand's reputation and financial stability.