Where in the Crowne Plaza License Agreement can information about non-competition covenants be found?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
| Obligation | Section In | Item in | |
|---|---|---|---|
| Agreement | Disclosure Document | ||
| w. Non-competition covenants | License: 3.A (14) | Items 16 & 17 |
Source: Item 11 — Franchisor's Assistance, Advertising, Computer Systems, and Training (FDD pages 69–81)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, details regarding non-competition covenants can be located in Section 3.A (14) of the License Agreement. Item 16 and Item 17 of the disclosure document also contain information about non-competition covenants.
Non-competition covenants are legally binding agreements that restrict a franchisee's ability to engage in similar business activities, both during the term of the franchise agreement and for a specified period after the agreement terminates. These covenants are designed to protect the franchisor's brand, trade secrets, and customer relationships.
Prospective Crowne Plaza franchisees should carefully review Section 3.A (14) of the License Agreement, as well as Items 16 and 17 of the FDD, to fully understand the scope and limitations of the non-competition covenants. Understanding these restrictions is crucial for franchisees to assess their future business options and ensure compliance with the terms of the franchise agreement. Franchisees should seek legal counsel to interpret the implications of these covenants and negotiate terms if necessary.