Does the Crowne Plaza License limit Holiday's right to license the Brand System to others?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
quirements in connection with any web sites you develop and maintain relating to your Hotel.
Other than as mentioned in this disclosure document, Holiday is not bound by the License or related agreements to provide supervision, assistance or services to you before opening or during operation of your Hotel.
ITEM 12
TERRITORY
Holiday does not typically grant licenses for exclusive areas or territories. The License will be for a specific site only and for the licensing of one hotel. The License applies to the location specified in the License and to no other location. You will not receive an exclusive territory. You may face competition from other licensees, from hotels that Holiday or its affiliates own, or from other channels of distribution or competitive brands that Holiday or its affiliates control.
You may not promote, implement or be responsible for any web site relating to your Hotel without Holiday's advance written approval. You may not register any of the Marks (defined in Item 13), as part of any domain name or Uniform Resource Locator ("URL"), and/or display or use any of the marks or other intellectual property rights related to the Brand System or to any of the other brands licensed by Holiday in connection with any web site, without Holiday's advance written approval. You must comply with all of Holiday's web site requirements in connection with any web sites you develop and maintain relating to your Hotel. The License does not otherwise limit the channels through which you may solicit customers for your Hotel.
Source: Item 12 — Territory (FDD pages 81–82)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the license agreement does not generally limit Holiday's right to license the Brand System or any part of it to others. Holiday retains the right to license the Brand System, engage in business activities, and license other hotels or hotel brands. This means that as a Crowne Plaza franchisee, you may face competition from other licensees, hotels owned by Holiday or its affiliates, or other channels of distribution or competitive brands controlled by Holiday or its affiliates.
The Crowne Plaza license is specific to the site for which it is granted, meaning it applies only to the location specified in the license and no other. Franchisees do not receive an exclusive territory. This lack of territorial exclusivity is a common practice in the franchise industry, allowing franchisors to expand their brand presence more rapidly. However, it also means that Crowne Plaza franchisees must be prepared to compete with other hotels within the same brand family.
Furthermore, the FDD states that there is no restriction in the license on Holiday's using any channel of distribution to solicit customers for Holiday's and its affiliates' hotels, whether operating under the marks licensed to you or other marks. Holiday and its affiliates are not restricted from establishing other licenses or company-owned outlets or other channels of distribution through which services or licenses under different trademarks might be offered. The license creates no rights of any kind for you in these other hotel brands and/or businesses at any other location. The license grants you no options, rights of first refusal or other rights to acquire additional licenses.
In summary, the Crowne Plaza franchise agreement does not provide franchisees with any territorial exclusivity or limit Holiday's ability to license the Brand System to others, including competitors. Prospective franchisees should carefully consider the potential for competition from other Crowne Plaza hotels and other brands within Holiday's portfolio when evaluating this franchise opportunity.