Does the indemnity provision for equipment at a Crowne Plaza survive the termination or expiration of the lease?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment Lessee will indemnify The Coca-Cola Company and its affiliates and each of their officers, agents, employees, directors, shareholders, affiliates, successors, and assigns (hereinafter the "Indemnified Parties") against, and hold Indemnified Parties wholly harmless from, any and all claims, actions, suits, proceedings, demands, damages, and liabilities of whatever nature, and all costs and expenses, including without limitation Indemnified Parties' reasonable attorneys' fees and expenses, relating to or in any way arising out of (a) the ordering, delivery, rejection, installation, purchase, leasing, maintenance, possession, use, operation, control or disposition of the Equipment or any portion thereof; (b) any act or omission of Equipment Lessee, including but not limited to any loss or damage to or sustained by the Indemnified Parties arising out of Equipment Lessee's failure to comply with all the terms and conditions of this Lease; (c) any claims for liability in tort with respect to the Equipment, excepting only to the degree such claims are the result of the Indemnified Parties' negligent or willful acts.
The provisions of this Section 10 will survive termination and expiration of this Lease.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the indemnity provision related to equipment leases does indeed survive the termination or expiration of the lease. Specifically, Equipment Lessee (the franchisee) will indemnify The Coca-Cola Company and its affiliates against any claims, actions, suits, proceedings, demands, damages, and liabilities, including attorneys' fees and expenses, arising from the equipment. This includes issues related to the ordering, delivery, installation, use, or disposition of the equipment, as well as any acts or omissions by the Equipment Lessee or claims of liability in tort.
This survival clause means that even after the lease term ends, a Crowne Plaza franchisee remains responsible for any liabilities or damages related to the leased equipment. This could have significant financial implications if issues arise after the lease has terminated, as the franchisee would still be held accountable.
It is important for prospective Crowne Plaza franchisees to fully understand the scope of this indemnity and to ensure they have adequate insurance coverage to protect themselves against potential claims. Franchisees should also maintain detailed records of equipment maintenance and usage to help defend against any future claims. This provision is common in franchise agreements to protect the franchisor and affiliated parties from liabilities associated with equipment used by franchisees.