Does SCH provide any warranties of fitness for purpose or merchantability to Crowne Plaza?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
loy such work product within the Client's business during the term of this Agreement.
9. Client Representative.
| The following individual | shall represent the Client during the | |
|---|---|---|
| performance of this Agreement with respect to the services and deliverables as defined herein and shall | ||
| have the authority to execute written modifications or additions to this contract pursuant to Section 15. |
10. Taxes.
Any and all taxes, except income taxes of SCH, imposed or assessed by reason of this contract or its performance, including but not limited to sales or use taxes, shall be paid by Client. Client and SCH specifically agree that SCH is not an employee of Client. In the event foreign, federal, state or local taxes are assessed on the Services and SCH has paid for such taxes, C
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, SCH (presumably referring to Six Continents Hotels, Inc.) offers a limited warranty to its clients. SCH warrants that the analyses, data, and services provided will be of the quality described in Exhibit A and performed by qualified personnel. However, SCH explicitly disclaims all other warranties, whether written, oral, or implied, including any warranty of fitness for a particular purpose or merchantability.
This disclaimer means that Crowne Plaza franchisees cannot hold SCH liable for any issues arising from the suitability of the services for a specific purpose or their general merchantability, beyond the express warranty provided. This limitation of liability extends to special or consequential damages related to the franchisee's revenue or profits, regardless of whether SCH was aware of the potential for such damages.
In the event that the limitation of damages is deemed unenforceable, the agreement stipulates that SCH's liability is limited to $100 as liquidated damages. This clause underscores the importance of franchisees understanding the scope and limitations of SCH's warranties and potential liability. Franchisees should seek clarification on Exhibit A to fully understand the scope of the warranty provided by SCH.