For Crowne Plaza, what happens if the Issuer Agreement for Conveyed Transactions has been terminated or suspended?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
12.6 Effect of Termination. Upon expiration or termination of the Agreement:
(a) All obligations by a party to pay or reimburse the other party for any obligations associated with transactions you have submitted to us or disputed payments will survive termination of the Agreement until finally and irrevocably paid in full and settled.
(b) You shall continue to bear total responsibility for all Chargebacks, fees, and other amounts (including all Servicers Fees and Third Party Based Fees) associated with transactions submitted by you or by any assignee or transferee of the Agreement not previously approved by us, and for all activity under your Merchant Account, until all such Servicers Fees, Third Party Based Fees, Chargebacks, and other amounts have been paid in full (and regardless of whether such transactions were submitted and such activity occurred before or after termination).
(c) Your Limited License and any other license related to the terminated Service(s) immediately terminate and, within 5 days after termination, you must return to us or destroy all related Software and Documentation and, upon our request, certify the same to us in writing.
(d) In the event you file for protection under the U.S. bankruptcy code or any other laws relating to bankruptcy, insolvency, assignment for the benefit of creditors or similar laws, and you continue to use our Services, it is your responsibility to open new accounts to distinguish pre and post filing obligations.
You acknowledge that as long as you utilize the accounts you established prior to such filing, we will not be able to systematically segregate your post-filing transactions or prevent set-off of the pre-existing obligations.
In that event, you will be responsible for submitting an accounting supporting any adjustments that you may claim.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, Section 12.6 outlines the effects of the termination of the agreement. Specifically, all payment obligations between the franchisee and franchisor related to submitted transactions or disputed payments will remain in effect until fully paid and settled. This means that even after the agreement ends, the franchisee is still responsible for any outstanding financial obligations.
Furthermore, the franchisee retains total responsibility for all chargebacks, fees, and other amounts, including Servicers Fees and Third-Party Based Fees, associated with transactions they submitted. This responsibility extends until all such fees, chargebacks, and other amounts are fully paid, regardless of whether the transactions occurred before or after the termination date. This ensures that Crowne Plaza is protected from financial losses related to transactions processed during the franchise term.
Upon termination, the franchisee's Limited License and any other licenses related to the terminated services immediately cease. Within five days of termination, the franchisee must either return or destroy all related software and documentation, and provide written certification of doing so upon request. This is a standard procedure to protect Crowne Plaza's intellectual property and ensure that the franchisee no longer uses the brand's resources after the agreement has ended.
Additionally, if a franchisee files for bankruptcy and continues to use Crowne Plaza's services, they are responsible for opening new accounts to differentiate between pre- and post-filing obligations. If the franchisee uses pre-existing accounts, Crowne Plaza will not be able to systematically segregate post-filing transactions or prevent set-off of pre-existing obligations, making it the franchisee's responsibility to provide an accounting for any claimed adjustments.