What is the required notice period for a Crowne Plaza Equipment Lessee to request equipment removal?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Equipment Lessee may request the removal of any Equipment upon thirty (30) days prior written notice to Company, and in addition, Company may remove any piece of Equipment for any reason upon thirty (30) days prior written notice to Customer.
Removal of Equipment will not affect the term of any agreement between the parties.
If this Lease is terminated with respect to any piece of Equipment for any reason, other than Company removing a piece of Equipment without cause under this section, prior to 100 months from the Commencement Date for that piece of Equipment, Equipment Lessee will pay Company the actual cost of removal (including standard shipping and handling charges) and remanufacturing of that Equipment, as well as the unamortized portion of the costs of (i) installation, (ii) non-serialized parts (e.g., pumps, racks and regulators) and other ancillary equipment.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, an Equipment Lessee who wishes to have equipment removed must provide written notice to the company 30 days in advance. This advance notice allows Crowne Plaza to prepare for the removal process.
Crowne Plaza also has the right to remove equipment with a 30-day written notice to the customer, regardless of the Equipment Lessee's request. This provision allows Crowne Plaza to manage and maintain its equipment as needed.
If the equipment is removed before 100 months from its installation date due to the Equipment Lessee's request or a termination (excluding removal by Crowne Plaza without cause), the Equipment Lessee is responsible for covering the actual removal costs, including shipping and handling, remanufacturing expenses, and the unamortized portion of installation and non-serialized parts costs. This condition incentivizes franchisees to maintain the equipment for a reasonable period.
These financial responsibilities for early removal can be significant, so a prospective Crowne Plaza franchisee should carefully consider the equipment lease terms and potential costs associated with early removal when making business decisions.