What monetary obligations must a Crowne Plaza licensee satisfy to IHG and its Affiliates, including executing a general release, before a transfer is approved?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- (2) Licensee must satisfy all of its accrued monetary obligations to IHG and its Affiliates, including an amount equal to a reasonable estimate of the costs and fees not yet accumulated and/or invoiced, and will execute (on Licensee's behalf and on behalf of its Affiliates), in a form prescribed by IHG, a general release of any and all claims against IHG and its Affiliates, and their respective officers, directors, agents and employees.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, a licensee seeking to transfer ownership must fulfill specific monetary obligations to IHG and its affiliates before the transfer can be approved. This includes satisfying all accrued monetary obligations, as well as providing an amount equal to a reasonable estimate of costs and fees that have not yet been accumulated or invoiced.
In addition to settling outstanding financial matters, the licensee must execute a general release in a form prescribed by IHG. This release covers the licensee and its affiliates, releasing IHG and its affiliates, along with their respective officers, directors, agents, and employees, from any and all claims.
This requirement ensures that Crowne Plaza and IHG are protected from potential future liabilities or disputes arising from the previous licensee's operation of the franchise. It is a fairly standard practice in franchising to ensure all financial and legal matters are resolved before a transfer is finalized, safeguarding the brand and the network of franchisees.