If equipment is rented from Crowne Plaza, what obligation remains after the agreement is terminated?

According to the 2025 Crowne Plaza FDD, if a franchisee rents equipment from Crowne Plaza and the franchise agreement is terminated, the franchisee is still obligated to make rental payments. This obligation continues until the rented equipment is either paid for in full or returned to Crowne Plaza. This means that even if the franchise agreement ends, the financial responsibility for the rented equipment remains with the franchisee until one of these conditions is met.

This provision protects Crowne Plaza by ensuring they receive full payment for the equipment or its return, regardless of the franchise agreement's status. For a prospective franchisee, this highlights the importance of carefully evaluating equipment rental terms and costs, as these obligations extend beyond the term of the franchise agreement itself. Franchisees should factor in the potential costs of continuing rental payments or the expenses associated with returning the equipment when considering the overall financial implications of the franchise.

It is important to note that the FDD excerpt does not specify the exact process or conditions for returning the equipment. A prospective Crowne Plaza franchisee should seek clarification from the franchisor regarding the acceptable condition of returned equipment, any associated return shipping costs, and the method for calculating the remaining rental payments if the equipment is not returned. Understanding these details is crucial for making informed financial decisions and avoiding potential disputes upon termination of the franchise agreement.