After the initial term, how does the Crowne Plaza Agreement continue?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
6. Term of Agreement.
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- The term of this Agreement shall commence as of January 1, 2024 , and shall continue for an initial term of twelve (12) months, provided that this Agreement is not earlier terminated as more particularly described below ("Initial Term").
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- After the Initial Term, this Agreement shall automatically renew for additional one-year Terms, although either party may terminate this Agreement without cause (a) during a renewal Term, upon 90 days prior written notice to the other party, or (b) upon notice of non-renewal of at least 30 days prior to the end of a Term. If client terminates, client's agreement may continue and may continue to be billed for services for longer than 90 days if client is not meeting the Revenue Management Certification Standard and/or any other applicable IHG Brand Standard in an alternate, approved way.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the agreement automatically renews after the initial term. The initial term of the agreement starts on January 1, 2024, and lasts for twelve months. After this initial period, the agreement is automatically renewed for additional one-year terms.
However, either Crowne Plaza or the franchisee has the option to terminate the agreement during any of these renewal terms. To do so, the party wishing to terminate must provide written notice to the other party. If the termination occurs during a renewal term, a 90-day prior written notice is required. Alternatively, either party can provide a non-renewal notice at least 30 days before the end of the current term to prevent the agreement from renewing for another year.
It is important to note that if the franchisee terminates the agreement, billing for services may continue for longer than 90 days if the franchisee is not meeting the Revenue Management Certification Standard or any other applicable IHG Brand Standard, unless an alternative, approved arrangement is in place. This condition could result in unexpected costs even after the franchisee decides to terminate the agreement.