What state's laws govern the Crowne Plaza agreement?
Crowne_Plaza Franchise · 2025 FDDAnswer from 2025 FDD Document
Amendment To The Holiday Hospitality Franchising, LLC Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resorts License Agreement Pursuant To The Rhode Island Franchise And Distributorship Act
Notwithstanding anything to the contrary set forth in the above License Agreement ("License"), the following provisions shall supersede and apply to each License for a Crowne Plaza, Crowne Plaza Suites, and Crowne Plaza Resort issued in the State of Rhode Island:
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- In accordance with the provision under the U.S. Bankruptcy Code (11 U.S.C.A. Sec. 101 et seq.), paragraphs 11.C(1)(b) and (d) of the License shall be amended to include the following language: "Enforceability of this provision is a matter governed by the U.S. Bankruptcy Code and enforceability or nonenforceability is subject to that law and rulings of a court of competent jurisdiction."
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- Section 19-28.14 of the Rhode Island Franchise Investment Act provides that: "A provision in a franchise agreement restricting jurisdiction or venue to a forum outside this state or requiring the application of the laws of another state is void with respect to a claim otherwise enforceable under this Act." This provision will also apply to the Guaranty.
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- Any provision in the License which designates the governing law as that of any state other than the State of Rhode Island is deleted from Licenses issued in the State of Rhode Island.
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- This Amendment may be executed in counterparts, which together shall constitute one and the same instrument. Signatures via Conga Sign, DocuSign, .PDF file, facsimile, or other electronic format have the same force and effect as originals.
Source: Item 23 — Receipts (FDD pages 100–424)
What This Means (2025 FDD)
According to the 2025 Crowne Plaza FDD, the governing state law depends on the franchisee's location. Amendments to the standard Crowne Plaza license agreement specify that for franchisees operating in California, Hawaii, Maryland, North Dakota, Rhode Island, Virginia, and Washington, the franchise agreement's provisions are superseded by the laws of their respective states if any conflicts arise.
For example, the FDD states that for Crowne Plaza franchises in California, a clause in the standard agreement requiring application of Georgia law may not be enforceable under California law. Similarly, for franchises in Washington, the Washington Franchise Investment Protection Act may override conflicting provisions in the standard franchise agreement. In North Dakota, the laws of North Dakota supersede any provisions of the License, or Georgia law, if such provisions are in conflict with such North Dakota laws.
These amendments ensure that franchisees' rights and protections under their state's franchise laws are upheld. This is a common practice in franchising to comply with varying state regulations and provide a level of legal certainty for franchisees. Prospective franchisees should carefully review the specific amendment applicable to their state to understand how it modifies the standard Crowne Plaza franchise agreement.