What happens if a Crowne Plaza licensee contests IHG's ownership of the Brand System?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (3) Licensee, or any entity or individual having a direct or indirect ownership interest in it, contests in any court or proceeding IHG's ownership of the Brand System or any part of it, or the validity of any of the Marks or other trademarks, service marks or other intellectual property associated with any of IHG's businesses; or
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, if a licensee, or any entity or individual with a direct or indirect ownership interest in the licensee, contests IHG's ownership of the Brand System or the validity of any of the Marks or other intellectual property associated with IHG's businesses in any court or proceeding, it constitutes a breach of the license agreement.
This action can lead to the termination of the Crowne Plaza franchise agreement. This provision protects IHG's intellectual property rights and ensures that franchisees do not undermine the brand's ownership and control over its trademarks and systems.
For a prospective franchisee, this means acknowledging and respecting IHG's ownership of the Brand System is crucial. Challenging IHG's ownership, even indirectly, can have severe consequences, including the loss of the franchise. This clause is typical in franchise agreements to safeguard the franchisor's brand and intellectual property.