Does IHG have the right to change the Crowne Plaza Brand System?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
The Standards and all changes to the Standards may be presented in any format, including but not limited to print, electronic or other media. IHG has the right to periodically change the Brand System by adding, modifying, altering and/or deleting elements of the Brand System. "Brand System Hotel(s)" means the hotel(s) operated by IHG, an Affiliate of IHG, or a licensee or franchisee of IHG under the Brand System in any of the fifty (50) states of the United States of America, the District of Columbia, or Canada, and does not include any other hotel operated under a different brand or any other business operation of IHG. An "Affiliate" means, as to any Entity, any division, subsidiary, parent or other Entity that, directly or indirectly, Controls, is Controlled by or is under common Control with such Entity.
Each change in the Standards shall be communicated in writing to Licensee at least 30 days before it goes into effect (which communication may be in hard paper copy or, at IHG's option, in digital, electronic or other computerized form, and if such communication is in digital, electronic or other computerized form, Licensee must pay any costs to retrieve, review, use or access same). IHG's designated internal franchise committee or subcommittee, must approve any such change and must determine, in the exercise of its business judgment, that the change was adopted in good faith and is consistent with the long-term overall interests of the Brand System after seeking the advice and counsel of the appropriate committee of the IHG Owners Association.
Licensee, other licensees of the Brand System, and IHG's owned and managed hotels are eligible for membership in the IHG Owners Association (the franchise association or successor sanctioned as such by IHG) and are entitled to vote at its meetings on the basis of one hotel, one vote, provided that Licensee or IHG, as the case may be, has paid all its dues and fees owing to the IHG Owners Association. The purpose of the IHG Owners Association will be to consider, discuss, and make recommendations on common issues relating to the operation of Brand System hotels. IHG will seek the advice and counsel of the IHG Owners Association Board of Directors or, subject to the approval of IHG, such committees, directors or officers of the IHG Owners Association to which or to whom the IHG Owners Association Board of Directors may delegate such responsibilities.
IHG Owners Association committees, their functions and their members will be subject to approval in writing by IHG, which approval will not be unreasonably withheld. Recognizing that the IHG Owners Association must function in a manner consistent with the best interests of all persons using the Brand System, Licensee and IHG will use their best efforts to cause the governing rules of the IHG Owners Association to be consistent with this License.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, IHG has the right to periodically change the Brand System by adding, modifying, altering, and/or deleting elements of the Brand System. These changes to the Standards may be presented in any format, including print, electronic, or other media. IHG is required to communicate each change in the Standards to the franchisee in writing at least 30 days before it goes into effect. This communication can be in hard paper copy or in digital, electronic, or other computerized form. However, the franchisee is responsible for any costs to retrieve, review, use, or access the communication if it is in digital, electronic, or other computerized form.
Before any changes are implemented, IHG's designated internal franchise committee or subcommittee must approve the change. This committee must determine, using its business judgment, that the change was adopted in good faith and is consistent with the long-term overall interests of the Brand System. This determination is made after seeking advice and counsel from the appropriate committee of the IHG Owners Association.
Licensees, other licensees of the Brand System, and IHG's owned and managed hotels are eligible for membership in the IHG Owners Association. Members are entitled to one vote per hotel at meetings, provided all dues and fees are paid. The IHG Owners Association's purpose is to consider, discuss, and make recommendations on common issues relating to the operation of Brand System hotels. IHG will seek the advice and counsel of the IHG Owners Association Board of Directors or its delegated committees, directors, or officers. However, IHG retains the right to approve the IHG Owners Association committees, their functions, and their members in writing, ensuring that the Association functions in a manner consistent with the best interests of all persons using the Brand System.