Which item in the Crowne Plaza Franchise Disclosure Document discusses the franchisee's obligation regarding capital reserve?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section In Agreement | Item in Disclosure Document |
|---|---|---|
| y. | License: 13.O | Item 6 |
| Other: Capital Reserve1 | and 3.A(7)(i) |
Source: Item 9 — Franchisee's Obligations (FDD pages 68–69)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, Item 9 outlines the franchisee's obligations, including those related to capital reserves. The table within Item 9 cross-references specific obligations with sections in the License Agreement and corresponding items in the Disclosure Document.
Specifically, the franchisee's obligation regarding the Capital Reserve is detailed in the License Agreement under sections 13.O and 3.A(7)(i). This obligation is further discussed in Item 6 of the Franchise Disclosure Document.
For a prospective Crowne Plaza franchisee, this means that Item 6 of the FDD contains important information about the requirements for maintaining a capital reserve. The franchisee should carefully review Item 6 in conjunction with the referenced sections of the License Agreement to fully understand the obligations and requirements related to the capital reserve.