What happens to prior agreements between the parties once the Crowne Plaza agreement is in effect?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
or to cancel a franchise without reasonable cause or to use undue influence to induce a franchisee to surrender any right given to it by any provision contained in the franchise." If any ground for default or termination stated in the License does not constitute "reasonable cause," as that term may be defined in the Virginia Code, that provision may not be enforceable.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
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Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Washington Franchise Investment Protection Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Washington:
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- If any of the provisions in the franchise disclosure document or license agreement are inconsistent with the relationship provisions of RCW 19.100.180 or other requirements of the Washington Franchise Investment Protection Act, the provisions of the Act will prevail over the inconsistent provisions of the franchise disclosure document and license agreement with regard to any license sold in Washington.
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- Nothing in the License shall prevent the licensee from bringing an action in Washington courts to the extent that such actions are provided for under the Washington Franchise Investment Protection Act.
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- A release or waiver of rights executed by a Franchisee will not include rights under the Washington Franchise Protection Act or any rule or order thereunder except when executed pursuant to a negotiated settlement after the license agreement is in effect and where the parties are represented by independent counsel. Provisions such as those which unreasonably restrict or limit the statute of limitations period for claims under the Act, and rights or remedies under the Act such as a right to a jury trial, may not be enforceable.
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- The state of Washington has a statute, RCW 19.100.180 which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your license. There may also be court decisions which may supersede the Franchise Agreement in your relationship with the Franchisor including the areas of termination and renewal of your license.
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- In the event of a conflict of laws, the provisions of the Washington Franchise Investment Protection Act, Chapter 19.100 RCW may prevail.
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- The Licensor will have no obligation upon the termination of the License Agreement to offer the Franchisee a continued right to operate its Even Business, and the Franchisee may be required at that time to stop operating its hotel as an Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort and to comply with all post-termination obligations.
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- Pursuant to RCW 49.62.020, a noncompetition covenant is void and unenforceable against an employee, including an employee of a licensee, unless the employee's earnings from the party seeking enforcement, when annualized, exceed $100,000 per year (an amount that will be adjusted annua
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, several amendments to the standard license agreement address how the new agreement interacts with existing laws and prior agreements, particularly in specific states. These amendments generally state that the provisions of the new license agreement will supersede any conflicting provisions in prior agreements. However, this superseding effect is often qualified by stipulations that ensure compliance with state-specific franchise laws.
For franchisees in certain states like Washington, North Dakota, Maryland, Rhode Island, California, Hawaii, and Virginia, specific clauses within the Crowne Plaza license agreement are amended to ensure adherence to local franchise laws. These amendments address issues such as conflicts of law, limitations on liability, and restrictions on franchisee rights. For example, the amendment for Washington states that if any provisions in the franchise disclosure document or license agreement are inconsistent with the Washington Franchise Investment Protection Act, the Act's provisions will prevail. Similarly, the North Dakota amendment indicates that the laws of North Dakota supersede any conflicting provisions in the license agreement or Georgia law.
These amendments also address specific legal matters such as bankruptcy code, termination and renewal rights, and non-competition covenants. For instance, several state-specific amendments include language clarifying the enforceability of certain provisions under the U.S. Bankruptcy Code. Additionally, the Washington amendment addresses non-competition covenants, stating that any conflicting provisions in the license agreement are void and unenforceable if they do not meet certain earnings thresholds as defined by Washington state law. These stipulations ensure that the Crowne Plaza franchise agreement remains compliant with local laws and protects the rights of franchisees within those states.