What is the required notice period for the Company to remove dispensing equipment from a Crowne Plaza location?

According to the 2025 Crowne Plaza FDD, the Company may remove any piece of equipment for any reason, provided they give the Customer thirty (30) days prior written notice. This applies to equipment leased to the Customer. The equipment includes permanent merchandising, menu boards, refrigeration units, ice makers, and water filtration equipment installed by the Company on the Equipment Lessee's premises, unless otherwise agreed in writing.

This means that Crowne Plaza has the right to remove equipment from a franchisee's location with a 30-day written notice, regardless of the franchisee's preference or operational needs. This could potentially disrupt the franchisee's business if the removed equipment is essential for their operations. The franchisee needs to be aware that the removal of equipment does not affect the term of any agreement between the parties.

However, if the equipment is removed before 100 months from the commencement date for a reason other than the Company removing it without cause, the Equipment Lessee will be responsible for the actual cost of removal, remanufacturing, installation, non-serialized parts, and other ancillary equipment. This cost is referred to as "unbundling costs." Therefore, it is important for a franchisee to understand the terms and conditions related to equipment removal to avoid unexpected expenses.

Prospective franchisees should carefully review the equipment lease agreement and discuss with Crowne Plaza the circumstances under which equipment might be removed and the associated costs. Understanding these terms is crucial for managing potential disruptions and financial obligations during the franchise term.