What monetary obligations must a Crowne Plaza licensee satisfy to IHG and its affiliates before a transfer can be 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 Crowne Plaza's 2025 Franchise Disclosure Document, a licensee seeking to transfer ownership must fulfill all outstanding monetary obligations to IHG (InterContinental Hotels Group) and its affiliates. This includes not only invoiced amounts but also a reasonable estimate of costs and fees that have not yet been invoiced.
In practical terms, a Crowne Plaza franchisee looking to sell their business must settle all accounts with IHG before the transfer can proceed. This encompasses franchise fees, marketing contributions, and any other charges for services or products provided by IHG. The requirement to estimate and pay un-invoiced amounts adds a layer of complexity, as the franchisee will need to project potential future charges to ensure full compliance.
Additionally, the franchisee must execute a general release of claims against IHG and its affiliates. This release, in a form prescribed by IHG, covers any potential legal claims the franchisee or its affiliates might have against IHG, its officers, directors, agents, and employees. This is a standard practice in franchise transfers, designed to prevent future litigation and ensure a clean break between the parties. Failure to meet these financial and legal obligations can result in the denial of the transfer and potential breach of the license agreement.