If a Crowne Plaza franchisee has an issue with a Conveyed Transaction, with whom must they pursue claims and disputes?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
B. Trademark Disputes.
The "Marks" means the name and mark "Crowne Plaza®", IHG One Rewards and IHG Concerto and their distinguishing characteristics and the other service marks, trademarks, trade names, slogans, commercial symbols, logos, trade dress, copyrighted material and intellectual property associated with the Brand System, including, without limitation, those which IHG may designate in the future for use and those which IHG does not designate as withdrawn from use. Licensee shall notify IHG immediately of (i) an infringement, or a challenge to Licensee's use of any of the Marks; (ii) any objections, demands,
controversies, allegations or actions asserted or taken by third parties involving any of the Marks or any part of the Brand System of which Licensee becomes aware; and, (iii) any potentially infringing or unauthorized uses of any of the Marks or any part of the Brand System of which Licensee becomes aware. IHG or its Affiliates will have the sole and exclusive right to handle disputes with third parties concerning use of all or any part of the Marks or Brand System, and Licensee will, at its reasonable expense, extend its full cooperation to IHG in all such matters. All recoveries made as a result of disputes with third parties regarding use of the Marks or Brand System or any part thereof shall be for the account of IHG. IHG need not initiate suit against alleged imitators or infringers, and may settle any dispute by grant of a license or otherwise. Licensee will not initiate any suit or proceeding against alleged imitators or infringers, or any other suit or proceeding to enforce or protect the Marks or Brand System.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
Based on the 2025 Crowne Plaza Franchise Disclosure Document, the franchisee must notify IHG immediately of any issues pertaining to trademark disputes. IHG, or its affiliates, have the sole and exclusive right to handle disputes with third parties concerning the use of all or any part of the Marks or Brand System. The franchisee is obligated to extend its full cooperation to IHG in all such matters at its reasonable expense.
According to the FDD, all recoveries made as a result of disputes with third parties regarding the use of the Marks or Brand System, or any part thereof, shall be for the account of IHG. IHG is not obligated to initiate a suit against alleged infringers and may settle any dispute by grant of a license or otherwise.
The Crowne Plaza franchisee is prohibited from initiating any suit or proceeding against alleged imitators or infringers, or any other suit or proceeding to enforce or protect the Marks or Brand System. This means that Crowne Plaza franchisees do not have the authority to independently pursue legal action related to trademark infringements or disputes concerning the brand; instead, they must rely on IHG to manage and resolve such issues.