What is the length of the Initial Term of the agreement with Crowne Plaza?
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.
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- Termination & Change of Control. In the event of a termination or expiration of the License Agreement, SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of a "Change of Control" (defined as a change in total or complete ownership of the Hotel and/or in an event when new partial or majority ownership of the Hotel , whether by merger, investment, or acquisition, results in involvement of another party to the License Agreement that places SCH in a disadvantage if the existing terms of this Agreement are maintained), SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of such termination by SCH only Sections 2, 3, 4, 7, 8, 9, 10, 11, 13, 14 and 18 herein shall survive such termination.
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- Either party may terminate this Agreement upon providing ninety (90) days prior written notice to the other party.
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- If Client is participating with a third party intermediary (TPI) that is not certified by SCH, even if Client has obtained a waiver to participate with said non-certified TPI, this agreement shall be terminated upon notice to Client.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the initial term of the agreement is 12 months, beginning on January 1, 2024. This initial term applies specifically to the agreement between SCH and the client, as detailed in the provided excerpt. The agreement will continue for the initial term, provided it is not terminated earlier as described in the document.
Following the initial 12-month term, the agreement automatically renews for additional one-year terms. However, 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 notice of non-renewal at least 30 days before the end of a term to prevent automatic renewal.
Termination of the agreement can also occur under specific circumstances, such as the termination or expiration of the License Agreement, in which case SCH may elect to terminate the agreement immediately with written notice. Similarly, a "Change of Control," defined as a change in the hotel's ownership that disadvantages SCH, allows SCH to terminate the agreement immediately. If the client is working with a third party intermediary that is not certified by SCH, the agreement can be terminated upon notice to the client.