What ownership interest qualifies an entity's trademarks as included in the Company's or Customer's trademarks for the Crowne Plaza agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Neither Customer nor Company will make use of the other's trademarks or logos (either alone or in conjunction with their or another party's trademarks or logos) without the prior written consent of that party, and Customer will not make use of any of the Bottler's trademarks or logos (either alone or in conjunction with their or another party's trademarks or logos) without the prior written consent of the Bottler, and all use of the other party's trademarks will inure to the benefit of trademark owner. For purposes of this Agreement, Company's and Customer's trademarks include trademarks owned, licensed to or controlled by an entity in which Company or Customer, respectively, has a 50% or more ownership interest. Each Party agrees that its approval will not be withheld or delayed unless (i) Customer determines that a Customer Mark has been used incorrectly for technical reasons (i.e., lack of trademark conformity) or (ii) Customer reasonably determines that the proposed activity or use would reflect negatively on Customer or the Participating System Hotels.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, for the purposes of the agreement, the company's and the customer's trademarks include trademarks owned, licensed to, or controlled by an entity in which the company or customer, respectively, has a 50% or more ownership interest. This definition is important because it clarifies the scope of trademark usage and protection within the franchise agreement. It ensures that trademarks held by entities affiliated with either Crowne Plaza or the franchisee (customer) through a significant ownership stake are also covered under the agreement's trademark provisions.
This means that if a franchisee has a 50% or greater ownership stake in another company that owns trademarks, those trademarks are also considered the franchisee's trademarks for the purposes of the Crowne Plaza agreement. Similarly, trademarks owned or controlled by entities in which Crowne Plaza has a 50% or greater ownership interest are included as Crowne Plaza's trademarks under the agreement. This provision aims to prevent any ambiguity regarding trademark usage and to protect the brand's intellectual property rights across affiliated entities.
Both Crowne Plaza and the franchisee must obtain prior written consent before using each other's trademarks or logos, either alone or in conjunction with their own or another party's trademarks or logos. Furthermore, the franchisee cannot use any of the Bottler's trademarks or logos without the Bottler's prior written consent. All use of the other party's trademarks will benefit the trademark owner. Each party agrees that its approval will not be withheld or delayed unless there are technical reasons, such as a lack of trademark conformity, or if the proposed activity or use would reflect negatively on the customer or the Participating System Hotels.