After the Initial Term, how does the Crowne Plaza agreement continue, and what is this period called?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- 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 for additional one-year terms after the initial term. This initial term is defined as twelve months commencing on January 1, 2024.
Either party has the option to terminate the agreement during a renewal term by providing 90 days' prior written notice. Alternatively, either party can provide at least 30 days' notice before the end of a term if they wish to terminate the agreement. However, if the client terminates the agreement, billing for services may continue for longer than 90 days if the client does not meet the Revenue Management Certification Standard or any other applicable IHG Brand Standard through an approved alternative method.
This renewal structure provides some flexibility for both Crowne Plaza and the franchisee, allowing for termination with sufficient notice while ensuring continued operation unless specific standards are not met. Franchisees should be aware of the conditions under which billing may extend beyond the standard termination notice period.