If Crowne Plaza assigns or subcontracts the Visa and Mastercard agreement, what is Crowne Plaza's obligation to the franchisee?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Subject to Card Organization Rules, we may assign or transfer the Agreement and our rights, duties, and obligations hereunder and/or delegate or subcontract our rights, duties, and obligations hereunder, in whole or in part, to any Third Party, whether in connection with a change in sponsorship, as set forth in the preceding paragraph, or otherwise, without your consent; provided, however that in the event we so assign or subcontract the Agreement, in whole or in part, we agree to provide you written notice of such assignment or subcontract (as applicable) as promptly as practicable following such assignment or subcontracting by us.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, Crowne Plaza has the right to assign or subcontract their Visa and Mastercard agreement to a third party without the franchisee's consent. However, Crowne Plaza is obligated to provide written notice to the franchisee as promptly as practicable following the assignment or subcontracting. This means that while Crowne Plaza can transfer the agreement to another party, they must inform the franchisee of this change in a timely manner.
This provision ensures that Crowne Plaza franchisees are kept informed about who is handling their Visa and Mastercard transactions. While Crowne Plaza retains the flexibility to manage these agreements, the notification requirement provides a level of transparency. The new Visa and Mastercard member would then be responsible for all obligations, including the Card program.
It is important for prospective franchisees to understand that Crowne Plaza can change the entity responsible for Visa and Mastercard transactions. Franchisees should ensure they understand the implications of such a change, including who to contact for support and how it might affect their operations. Franchisees should also confirm that the new member bank is in good standing and capable of fulfilling its obligations.