What opportunity does the Crowne Plaza Guaranty state that the Guarantor has had?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Each Guarantor hereby covenants, represents and warrants to IHG as follows: (a) Guarantor has had the opportunity to review, with the benefit of its legal counsel, each of the terms and conditions of this Guaranty and the License and waives any objection it may have to its failure to review such documents; (b) Guarantor shall at all times be informed on all such matters covered under this Guaranty; (c) Guarantor has legal capacity to execute and deliver this Guaranty and such execution has been duly authorized by all necessary action; (d) each obligation under this Guaranty is legal, valid, binding and enforceable against Guarantor in accordance with all of its terms and conditions, subject to general principles of equity and the effect of bankruptcy and other laws affecting the rights of creditors generally; (e) Guarantor is not a Prohibited Person; (f) this Guaranty does not contain any untrue statement of fact or omit to state any fact material to this Guaranty and (g) the financial statements provided by Guarantor are true and correct in all material respects, have been prepared in accordance with generally accepted accounting principles consistently applied and fairly present the financial condition of Guarantor as of such date.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, the Guarantor has the opportunity to review the terms and conditions of the Guaranty and the License with the benefit of their legal counsel. This means that before signing the Guaranty, the guarantor is encouraged to seek legal advice to fully understand the obligations and potential liabilities they are undertaking.
This provision protects the guarantor by ensuring they are informed and have the chance to object to any terms before committing to the agreement. By acknowledging this opportunity, the guarantor waives any future objections based on a lack of understanding or failure to review the documents.
This is a standard practice in franchising to ensure all parties are fully aware of their responsibilities and rights, and it helps to prevent future disputes arising from misunderstandings of the agreement.