Who retains the title to the dispensing equipment leased to a Crowne Plaza franchise?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
- TITLE TO THE EQUIPMENT. Title to the Equipment is, and will at all times remain, vested in Company. Equipment Lessee will have no right, title, or interest in or to the Equipment, except the right to quiet use of the Equipment in the ordinary course of its business as provided in this Lease. Equipment Lessee will execute such title documents, financing statements, fixture filings, certificates and such other instruments and documents as Company will reasonably request to ensure to Company's satisfaction the protection of Company's title to the Equipment and Company's interests and benefits under this Lease. Equipment Lessee will not transfer, pledge, lease, sell, hypothecate, mortgage, assign or in any other way encumber or dispose of any of the Equipment. THE PARTIES AGREE, AND EQUIPMENT LESSEE WARRANTS, THAT THE EQUIPMENT IS, AND WILL AT ALL TIMES REMAIN, PERSONAL PROPERTY OF COMPANY NOTWITHSTANDING THAT THE EQUIPMENT OR ANY PART THEREOF MAY NOW BE, OR HEREAFTER BECOME, IN ANY MANNER AFFIXED OR ATTACHED TO, OR EMBEDDED IN, OR PERMANENTLY RESTING UPON, REAL PROPERTY OR IMPROVEMENTS ON REAL PROPERTY. Equipment Lessee will not make any alterations, additions, or improvements to the Equipment without the prior written consent of Company. All parts added to the Equipment through alterations, repairs, additions or improvements will constitute accessions to, and will be considered an item of the Equipment and title to such will immediately vest in Company. Equipment and title to such will immediately vest in Company. Equipment and this Lease, and any amounts due or to become due, to any third party ("Assignee") for any reason. Upon receipt of written notice from Company's right, title and interest in or to any Equipment (in whole or in part) and this Lease, and any amounts due or to become due, to any third party ("Assignee") for any reason. Upon receipt of written notice from Company of such assignment, Equipment
- Assignee or to any other party designated in writing by such Assignee.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to Crowne Plaza's 2025 Franchise Disclosure Document, the company retains the title to the dispensing equipment leased to the franchisee. Specifically, the document states that title to the equipment is and will at all times remain vested in the company. The franchisee, referred to as the Equipment Lessee, only has the right to quietly use the equipment in the ordinary course of its business as provided in the lease.
To ensure the protection of the company's title to the equipment, the Crowne Plaza franchisee is required to execute title documents, financing statements, fixture filings, certificates, and other instruments as reasonably requested by the company. The franchisee is prohibited from transferring, pledging, leasing, selling, hypothecating, mortgaging, assigning, or in any way encumbering or disposing of any of the equipment.
The agreement explicitly states that the equipment is and will remain personal property of the company, regardless of whether it becomes affixed or attached to real property. Any alterations, additions, or improvements made to the equipment become accessions to the equipment, with the title immediately vesting in the company. The company also has the right to assign its interest in the equipment and the lease to a third party, in which case the franchisee is obligated to make payments to the assignee.