Can a party seek injunctive relief related to the Crowne Plaza agreement, and under what circumstances?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
10.8 Injunctive Relief. Nothing in this Agreement is intended to or should be construed to prohibit a party from seeking preliminary or permanent injunctive relief in appropriate circumstances from a court of competent jurisdiction.
10.9 Legal Action.
Any legal action arising in connection with this Agreement must be filed within five (5) years after the cause of action accrues, or it will be deemed time-barred and waived.
The parties waive any statute of limitations to the contrary.
- 10.10 Notices.
Any required notices under this Agreement shall be in writing and shall be deemed validly delivered if made by hand (in which case delivery will be deemed to have been effected immediately), or by overnight mail (in which case delivery will be deemed to have been effected one (1) business day after the date of mailing), or by first class pre-paid post (in which case delivery will be deemed to have been effected five (5) days after the date of posting), or by facsimile or electronic transmission (in which case delivery will be deemed to have been effected on the day the transmission was sent).
Any such notice shall be sent to the office of the recipient set forth on the cover page of this Agreement or to such other office or recipient as designated in writing from time to time.
- 10.11 Governing Law and Forum Selection.
This Agreement will be governed by the law of the State of Delaware, without regard to its conflict of law principles, unless a regulatory agency with jurisdiction over the applicable Service applies a different law.
The United Nations Convention on Contracts for International Sale of Goods will not apply.
Any action arising from or relating to this Agreement or its claimed breach shall be commenced and prosecuted only in the Supreme Court of the State of New York located in New York County, New York, and the parties consent to the exercise of personal jurisdiction by and exclusive venue in such court,
- 10.12 Compliance with Laws.
Each party will comply with all applicable laws and regulations and with all applicable orders issued by courts or other governmental bodies of competent jurisdiction.
- 10.13 No Third Party Beneficiaries.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, both Crowne Plaza (IHG) and the franchisee have the right to seek injunctive relief under certain circumstances. Specifically, the agreement does not prevent either party from seeking preliminary or permanent injunctive relief from a court of competent jurisdiction when appropriate. This means that if either Crowne Plaza or the franchisee believes they will suffer irreparable harm without immediate court intervention, they can ask a court to order the other party to take or stop taking certain actions.
Furthermore, the FDD clarifies IHG's right to injunctive relief, stating that any noncompliance by the franchisee with the terms of the license, or any unauthorized use of the Brand System or Marks, will cause irreparable damage to IHG. In such cases, IHG is entitled to both temporary and permanent injunctive relief from a court of competent jurisdiction, in addition to any other legal remedies. The franchisee consents to the entry of these injunctions, and IHG is not required to prove the inadequacy of money damages as a remedy or to post a bond.
This is a common provision in franchise agreements, as it protects the franchisor's brand and system standards. For a prospective Crowne Plaza franchisee, this means they must adhere strictly to the terms of the license agreement and properly use the Brand System and Marks to avoid potential legal action from IHG. It also means that the franchisee has the right to seek injunctive relief from Crowne Plaza if they believe Crowne Plaza is violating the agreement and causing them irreparable harm.