Which sections of the Crowne Plaza agreement survive the expiration or termination of the agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
In the event of a termination or expiration of the License Agreement, SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of a "Change of Control" (defined as a change in total or complete ownership of the Hotel and/or in an event when new partial or majority ownership of the Hotel , whether by merger, investment, or acquisition, results in involvement of another party to the License Agreement that places SCH in a disadvantage if the existing terms of this Agreement are maintained), SCH may elect to terminate this Agreement immediately upon written notice to Client. In the event of such termination by SCH only Sections 2, 3, 4, 7, 8, 9, 10, 11, 13, 14 and 18 herein shall survive such termination.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza Franchise Disclosure Document, specifically regarding the agreement with SCH, in the event of termination or expiration of the License Agreement, SCH has the option to terminate the agreement with the client immediately upon written notice. If SCH terminates the agreement, Sections 2, 3, 4, 7, 8, 9, 10, 11, 13, 14, and 18 of the agreement will remain in effect.
This means that even after the franchise agreement ends, certain obligations and rights outlined in those specific sections will continue to bind both the Crowne Plaza franchisee and SCH. These surviving sections likely cover critical aspects such as payment terms for services already rendered, confidentiality, intellectual property, dispute resolution, and other clauses necessary to ensure a smooth transition and protect the interests of both parties post-termination.
For a prospective Crowne Plaza franchisee, it's crucial to carefully review these sections to understand the long-term implications of the agreement. Franchisees should seek legal counsel to fully grasp their responsibilities and rights even after the franchise relationship concludes. This knowledge will help in planning for potential scenarios and mitigating risks associated with termination or expiration of the agreement.