What notification deadline applies to a Crowne Plaza licensee when transferring a non-controlling equity interest?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
If Licensee is in compliance with this License then, Licensee and/or any of its owners, members, partners or stockholders may consummate any Transfer of a direct or indirect non-Controlling Equity Interest in Licensee, or effect a transaction that does not result in a direct or indirect change of Control in Licensee, without IHG's consent, if: (a) Licensee notifies IHG in writing at least twenty (20) days before the Transfer's effective date; (b) Licensee provides IHG with the identity of the proposed transferee and its owners, together with all other related information reasonably requested by IHG and the proposed transferee and its owners meet IHG's then-current ownership criteria (including not being a Prohibited Person or a competitor of IHG); (c) such Transfer does not, whether in one transaction or a series of related transactions, result in the transfer or creation of a Controlling Equity Interest in Licensee; (d) such Transfer does not, whether in one transaction or a series of related transactions, result in the Transfer of all of Guarantor's Equity Interests in Licensee; and (e) Licensee and its owners, members, partners or stockholders sign those agreements that IHG shall have the right to require in order to implement this paragraph. In addition, at IHG's request, Licensee and any such transferees shall execute (or re-execute) (x) a general release of any and all claims against IHG and its Affiliates, and their respective officers, directors, agents and employees and (y) an amendment to this License that updates the ownership information in Attachment "A".
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, a licensee must notify IHG in writing at least twenty (20) days before the effective date of the transfer if they plan to transfer a direct or indirect non-controlling equity interest. This notification is required for the licensee and/or any of its owners, members, partners, or stockholders to proceed with the transfer without IHG's consent, provided they are in compliance with the license agreement.
In addition to providing written notice 20 days in advance, the licensee must provide IHG with the identity of the proposed transferee and its owners, along with any other related information reasonably requested by IHG. The proposed transferee and its owners must also meet IHG's then-current ownership criteria, including not being a Prohibited Person or a competitor of IHG.
Furthermore, the transfer must not result in the transfer or creation of a controlling equity interest in the licensee, whether in one transaction or a series of related transactions. It also cannot result in the transfer of all of the guarantor's equity interests in the licensee. The licensee and its owners, members, partners, or stockholders must also sign any agreements that IHG requires to implement these conditions. At IHG's request, the licensee and any transferees must execute a general release of claims against IHG and its affiliates, and an amendment to the license that updates the ownership information.