Does Holiday have the right to assign the Crowne Plaza license to another party?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Provision | Section In | Summary | |
|---|---|---|---|
| Agreement | |||
| a. Length of the license term (Note 1) | License: 11.A | The term begins on the Effective Date and expires 20 years from date Hotel opens in the Brand System for a new development; 10 or more years from date Hotel opens in the Brand System for a conversion; and 10 or more years from Effective Date for a change of ownership or re-licensing. | |
| b. Renewal or | Not applicable (see | The License does not provide for | |
| extension of term | License: 11.A) | renewal or term extensions. | |
| c. Requirements for you to renew or extend | Not applicable (see License: 11.A) | The License does not provide for renewal or term extensions. If we agree to Re-license, you may be asked to sign a contract with materially different terms and conditions than your original contract. | |
| d. Termination by you | Not applicable | ||
| e. Termination by | License: Not | MTSA may be terminated by IHG Tech | |
| Holiday without | applicable | for convenience on 90 days’ prior | |
| Cause | MTSS: 10.1 | written notice to the licensee. | |
| f. Termination by Holiday with Cause (Notes 2 and 3) | License: 11.B, 11.C, 13.J and Attachment B MTSS: 10.3 | Holiday may terminate with cause. You pay liquidated damages if Holiday terminates under Paragraphs 11.B, 11.C, or 13.J. Termination may occur for failure to perform “The Work”. See Notes 2 and 4 and Exhibit B. | |
| g. "Cause" defined – | License: 11.B, | Any default other than those listed in | |
| defaults which can | “h” below. | ||
| be cured (Note 3) | See Note 2. | ||
| h. "Cause" defined – non-curable defaults | License: 10, 11.C and Attachment B | Non-curable defaults: bankruptcy; non- dismissed judgments exceeding $50,000; trademark misuse, or if you contest Holiday's ownership of trademarks; loss of possession of the property; dissolution of the licensee entity; failure to identify or operate the Hotel as a Brand System Hotel; violation of Licensor’s proprietary | |
| Provision | Section In Agreement | Summary rights; unapproved transfers; conviction of a felony; false books and records; failure to comply with safety, security or privacy of your guests or reputation standards; condemnation or casualty occurs and Hotel does not reopen when required; unauthorized use of Marks; and, refusal to allow inspection or audit. | |
| i. | Your obligations upon termination/ non-renewal | License: 7.A. 11.D, 11.E, 13.J and Attachment "B" MTSS,13.1 & Attachment 4-1 to Schedule 4 | Obligations include de-identification and payment of amounts due. |
| j. | Assignment of License by Holiday | License: 9.A | Holiday has rights of assignment to any person or legal entity. |
Source: Item 17 — RENEWAL, TERMINATION, TRANSFER AND DISPUTE RESOLUTION (FDD pages 87–91)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, Holiday, the entity granting the franchise, retains the right to assign the license agreement to another party. The table in Item 17 summarizes key provisions of the license agreement, and section 'j' specifically addresses assignment of the license by Holiday. It states that Holiday has the right to assign the Crowne Plaza license to any person or legal entity.
This means that a prospective Crowne Plaza franchisee should be aware that the agreement they sign could be transferred to a completely different company during the term of the license. While this is not uncommon in franchising, it is important to understand that the new entity may have different priorities or management styles, which could impact the franchisee's business.
It is important for a potential franchisee to carefully review the full license agreement to understand the circumstances under which Holiday might assign the license and what rights the franchisee would have in such a situation. Understanding these terms can help a franchisee prepare for and navigate any potential changes in ownership during the franchise term.